Arthur Hayes Fuels Tether IPO Speculations Amid $500 Billion Valuation Buzz
The Tether IPO (Initial Public Offering) chatter is up once more, this time propagated by BitMEX co-founder and former CEO Arthur Hayes.
It facilities across the stablecoin issuers’ valuation, which some say might rival famend corporations like SpaceX, OpenAI, Costco, and Coca-Cola.
Is Tether Considering Going Public?
According to Arthur Hayes, Tether going public might spell doom for Circle after the USDC stablecoin issuers’ IPO. BeInCrypto reported the success of Circle’s IPO, after the agency raised the cap for its IPO, which was initially oversubscribed 25x.
“Next up a US IPO. Bye bye Crcle,” wrote Hayes.
The comment adopted revelations that Tether seeks funding at a $500 billion valuation. Reportedly, Tether is in talks with buyers to boost as a lot as $20 billion.
The deal might push the stablecoin issuer into the very best ranks of the world’s most beneficial non-public corporations, like OpenAI and Elon Musk’s SpaceX.
According to Tether CEO Paolo Ardoino, the corporate is contemplating a increase from a gaggle of high-profile buyers. The funds achieved will reportedly be channeled towards maximizing the corporate’s technique throughout numerous enterprise traces.
Meanwhile, group members see Tether’s transfer as an opportunistic increase whereas their leverage and market worth are nonetheless at their peak.
“…what occurs if yields fall again to 2%,” posed international macro investor Raoul Pal.
Notably, this isn’t the primary time there was buzz a couple of potential Tether IPO. In June, market analysts valued the stablecoin giant at $515 billion.
Jon Ma, a builder on Artemis, stated that such a valuation would make Tether the nineteenth most beneficial firm globally.
Despite the bullish projection, Ardoino clarified in June that Tether has no intention of going public, signaling confidence within the firm’s present non-public construction and trajectory.
Tether’s Prospective IPO Against Circle’s Public Listing
A dissection of Tether’s potential IPO towards Circle’s public itemizing accentuates Arthur Hayes’ sentiment.
As indicated, Tether appears to be like to boost $20 billion at a $500 billion valuation. In comparability, Circle’s market cap is round $35 billion, making it a 14x distinction.
Meanwhile, Tether’s USDT stablecoin has a market cap of $173 billion, roughly 2.3x that of Circle’s USDC ($73.6 billion).
In the identical approach, Tether is a considerably extra worthwhile operation than Circle. This is partly as a result of latter’s revenue-sharing settlement with the Coinbase exchange on a big portion of its USDC.
Unlike Tether’s USDT distribution in international markets, Circle has to rely closely on Coinbase to maneuver USDC at scale. This association considerably reduces Circle’s income in comparison with Tether, which doesn’t need to pay for its distribution.
“…when evaluating an funding in a stablecoin issuer, [you have to ask yourself] how will they distribute their product?” Hayes noted in a latest weblog.
While Circle made losses, Tether generated roughly $5 billion in Q2 2025. Of this, $3.1 billion was recurring (yield-based) revenue.
Excluding MTM (mark-to-market) positive factors, Tether’s $500 billion valuation is 40x final quarter’s annualized P/E (price-to-earnings) ratio. Therefore, there might not be an precise want for Tether to hunt a public itemizing.
“…in the event that they did, I feel the founders would look to spin off a US-regulated entity individually and preserve the non-business non-public,” one person noted.
Against this backdrop, the overall sentiment is that the rationale can’t be remotely associated to the necessity for extra money to generate different income streams.
Notably, nevertheless, there stay a variety of unanswered questions on Tether’s profitability and investments.
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