Tether CEO Paolo Ardoino has dismissed the idea of an Initial Public Offering (IPO) for the stablecoin issuer, despite a speculative valuation of $515 billion. This decision comes shortly after rival stablecoin firm Circle successfully debuted on the New York Stock Exchange, with its shares surging significantly.
Key Takeaways
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Tether CEO Paolo Ardoino has no plans for an IPO, despite rival Circle's successful public debut.
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A speculative valuation of $515 billion for Tether was deemed "a bit bearish" by Ardoino, citing the company's increasing Bitcoin and gold reserves.
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Tether's USDT is currently the third-largest cryptocurrency by market capitalization, valued at approximately $154.83 billion.
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Tether recently became the majority owner of Twenty One Capital, a new Bitcoin treasury company founded by Jack Mallers, which has quickly become the world's third-largest corporate holder of Bitcoin.
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Tether recently moved a significant amount of Bitcoin, approximately 37,229.69 BTC (worth about $3.9 billion), to addresses linked to Twenty One Capital.
Tether's Stance on Going Public
Paolo Ardoino, CEO of Tether, firmly stated on June 7 that the company has no intentions of pursuing a public listing. This declaration followed just two days after Circle, the issuer of the USDC stablecoin, made its public market debut on June 5, experiencing a remarkable 167% surge in its shares during its first trading session on the NYSE.
Valuation Speculation and Ardoino's Response
Speculation regarding Tether's potential valuation if it were to go public was ignited by Artmesis CEO Jon Ma. Ma suggested that Tether, responsible for the USDT stablecoin, could achieve a valuation of $515 billion, positioning it as the 19th largest company globally, surpassing giants like Costco and Coca-Cola.
While Ardoino acknowledged the $515 billion figure as a "beautiful number," he humorously suggested it might be "a bit bearish." He attributed this sentiment to Tether's growing treasury of Bitcoin and gold, indicating a belief that the company's true value could be even higher. Prominent Bitcoin advocates, including Anthony Pompliano and Jack Mallers, have even floated the possibility of Tether reaching a $1 trillion valuation in the future.
Future Growth and Strategic Moves
Ardoino expressed excitement for Tether's future growth phase. The company's USDT stablecoin holds a significant position in the cryptocurrency market, ranking as the third-largest by market capitalization. In a strategic move announced on April 24, Tether acquired a majority stake in Twenty One Capital, a new Bitcoin treasury company established by Jack Mallers of Strike. This acquisition has rapidly propelled Twenty One Capital to become the world's third-largest corporate holder of Bitcoin, trailing only Strategy (formerly MicroStrategy) and MARA Holdings. Furthermore, on June 3, it was reported that Tether transferred a substantial 37,229.69 Bitcoin, valued at around $3.9 billion, to addresses associated with this new Bitcoin-native financial platform.
Sources
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Tether CEO snubs IPO, says $515B valuation is 'a bit bearish’ — TradingView News, TradingView.
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Tether CEO Paolo Ardoino says 'no need to go public', Cointelegraph.
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