If Tether were to go public now, it would be valued at $515 billion, becoming the 19th most valuable publicly traded company globally. This conclusion was reached by John Ma, co-founder and CEO of Artemis.
The expert based his calculations on Circle’s market capitalization, which conducted an IPO and has been listed on the NYSE since June 5. Ma also used a multiplier derived from the profit metrics of two competitors and growth forecasts.
“A $515 billion valuation for Tether is a wonderful number. Perhaps a bit understated, considering our current (and growing) treasury in Bitcoin and gold, but I am still very modest,” commented Paolo Ardoino, CEO of the USDT issuer.
Anthony Pompliano, founder of Professional Capital Management, and Jack Mallers, head of Strike, suggested that Tether’s value could exceed $1 trillion.
Samuel Spitz, CEO and co-founder of Gently, called Ma’s calculations “foolish.” He noted that Circle’s current market value is largely based on the balance of supply and demand for shares, rather than fundamental business metrics.
The expert also questioned the size of the applied multiplier of 69.3. Many agreed with his view. Hannes Demske, CEO of Sunrise Investment Group, suggested a more realistic valuation for Tether at $75-80 billion. He indicated that this would represent about half the value of assets under management, similar to Circle. Opponents pointed out the different business models of the competitors.
Tether Focuses on the Global South
Ardoino stated in a tweet that he is genuinely “pleased with the new stage of the company’s growth.” In response to a comment, he confirmed that Tether has “no need to go public.”
Public status simplifies capital raising for development. However, the USDT issuer achieved $13 billion in net profit by the end of 2024. According to experts, this equates to $85.6 million per employee.
The company is actively diversifying its business, engaging in Bitcoin mining, and investing in crypto projects, including enterprises with treasuries in the leading cryptocurrency.
In the US, Tether faces challenges with USDT not aligning with proposed stablecoin regulations. Ardoino and Circle co-founder Jeremy Allaire have differing views on the regulatory environment’s development for the sector in the country.
The head of Tether suggested that the company might launch a separate “stablecoin” for the United States.
He also confirmed that emerging markets remain the primary focus for USDT. The issuer serves 420 million users in these jurisdictions and aims to reach a customer base of one billion.
In the first quarter, Tether’s operating profit from traditional investments amounted to $1 billion.