According to Bloomberg, Tether is considering raising up to $20 billion through a stock sale and tokenizing its shares. The company previously intervened to prevent some existing shareholders from selling their stocks at a low price and is exploring ways to ensure investor liquidity while maintaining a company valuation of $500 billion.
Tether seeks $20 billion in funding, SoftBank and Ark may invest.
At the end of September, it was reported that Tether, the world's largest stablecoin issuer, is in talks with investors to raise up to $20 billion, with SoftBank Group and Ark Investment Management potentially being major investors in this round of financing. The support of these two investment giants could help Tether drive growth and gain more mainstream recognition in the technology and finance sectors.
The advisor for this financing transaction is the investment bank Cantor Fitzgerald, headquartered in New York, previously led for a long time by U.S. Secretary of Commerce Howard Lutnick. The company is also responsible for the custody of Tether assets and has a long-standing and solid partnership with Tether.
SoftBank Group, based in Tokyo, is led by founder Masayoshi Son and is known for its bold technology investments. The company is also betting on growth in data centers, autonomous vehicles, and semiconductors, and has a deep partnership with OpenAI.
ARK, led by Cathie Wood, has invested in Tether's competitor Circle through an IPO.
Tether prevents existing shareholders from selling stock at a low price, targeting a valuation of 500 billion USD.
According to informed sources, at least one existing shareholder previously planned to sell stock at a price far below the company's $500 billion valuation, and Tether has intervened to stop this plan.
Tether did not disclose the identity of the investors who attempted to sell shares, but clearly stated:
"Any investor attempting to bypass the established process dominated by top global investment banks, or to trade with parties not authorized by Tether's management, is acting unwisely and recklessly."
Informed sources revealed that Tether's management is concerned that the selling behavior of existing investors may affect its massive financing. Another informed source stated that the company currently has no plans to allow existing shareholders to sell shares in this round of major financing.
Tether's upper management is considering various options, including stock buybacks, and storing the company's stock in digital form on the blockchain through tokenization after the transaction is completed.
This article Tether prohibits shareholders from selling stock at a low price, considers tokenizing its stock, targeting a valuation of 500 billion USD first appeared on Chain News ABMedia.
