Tether CEO Reveals Bold Stance: Why $515B Valuation is ‘Bearish’

The world of stablecoins is buzzing, especially after Circle’s recent public debut. But what about the largest player, Tether? Their CEO, Paolo Ardoino, just shared some surprisingly candid thoughts on going public and a massive speculative valuation. If you’re interested in the future of major crypto companies and their financial strength, this is a must-read.

Tether CEO Dismisses IPO Plans

In a recent statement, Tether CEO Paolo Ardoino made it clear the company has no current plans to pursue an IPO, or Initial Public Offering. This stance comes just days after Circle, a key competitor in the Stablecoin market, successfully listed its shares on the New York Stock Exchange (NYSE).

Ardoino stated on June 7, “No need to go public.” This simple sentence highlights Tether’s current position, emphasizing self-sufficiency and perhaps a preference for remaining a private entity, contrasting sharply with Circle’s move into the public market.

Why a $515 Billion Valuation Might Be Low

Ardoino also addressed recent speculation about Tether’s potential market worth. Artmesis CEO Jon Ma suggested that if Tether were to go public, its valuation could reach an astonishing $515 billion. This figure would place it among the world’s largest companies, surpassing established giants like Costco and Coca-Cola.

While calling the $515 billion a “beautiful number,” Ardoino offered a surprising perspective. He suggested the Valuation might actually be “a bit bearish.” This indicates that Tether’s internal assessment of its worth, or future potential, could be significantly higher than this widely circulated estimate.

Tether’s Growing Bitcoin and Gold Treasury

What makes the CEO think a $515 billion valuation is on the low side? Ardoino pointed directly to the company’s reserves. He cited Tether’s “current (and increasing) Bitcoin Treasury + gold treasury” as the primary reason for his view. Tether has been actively accumulating both Bitcoin and gold as part of its reserve strategy backing the USDT stablecoin.

This strategy recently saw Tether become the majority owner of Twenty One Capital, a new Bitcoin treasury company founded by Strike’s Jack Mallers. This acquisition instantly positioned Twenty One as the world’s third-largest corporate holder of Bitcoin, behind only MicroStrategy and MARA Holdings. Recent reports indicate significant movements of Bitcoin by Tether to addresses linked to this new platform, further solidifying their position.

Comparing Tether’s Stance to Circle’s IPO

The discussion around Tether’s potential IPO and valuation occurs in the context of Circle’s recent market entry. Circle, issuer of the USDC Stablecoin, saw its shares climb significantly on its first day of trading on the NYSE (up 167%). This successful debut has naturally led to questions about whether Tether, the market leader by a significant margin (USDT market cap around $155 billion), would follow suit.

Tether’s decision to remain private, despite the potential for a massive public Valuation and the precedent set by Circle, underscores a different strategic path. While Circle seeks public market access and associated benefits (capital, visibility), Tether seems content leveraging its existing profitability and substantial reserves, particularly its growing Bitcoin Treasury.

What This Means for the Stablecoin Market

Tether’s confidence, as expressed by its CEO, reflects the company’s strong financial position and belief in its future growth trajectory. The focus on building a substantial Bitcoin Treasury and gold reserves differentiates its strategy and potentially underpins a higher perceived intrinsic value than external market estimates might suggest. While an IPO might offer liquidity and public profile, Tether appears to believe its current structure and asset accumulation strategy are more beneficial for its next phase of growth.

In summary, Tether CEO Paolo Ardoino has firmly stated the company has no immediate plans for an IPO, contrasting with competitor Circle’s recent public listing. Furthermore, he finds a speculative $515 billion valuation for Tether to be potentially “a bit bearish,” primarily due to the strength and growth of its Bitcoin and gold reserves. This highlights Tether’s robust financial health and its unique strategy centered on accumulating significant digital and physical assets as part of its reserve management.