#USDT

Tether’s Potential IPO Valuation Could Hit $515 Billion, Says CEO Paolo Ardoino

Tether (USDT) CEO Paolo Ardoino has revealed that the company’s valuation could soar to $515 billion in the event of an initial public offering (IPO). Such a figure would place Tether among the top 20 largest companies globally, surpassing well-known giants like Costco and Coca-Cola.

While acknowledging the magnitude of this estimate, Ardoino described the projection as “a bit cautious,” especially in light of Tether’s rapidly expanding Bitcoin and gold reserves.

The potential valuation is largely derived from the market performance of Circle, a major competitor currently valued at $30 billion. Based on internal financial models, Circle is expected to reach $410 billion in EBITDA by 2025, applying a valuation multiple of 69.3.

In 2024, Tether reported a net profit of $13 billion, with $7 billion generated from U.S. Treasury bonds and repo transactions. The remaining $5 billion consists of unrealized gains on its Bitcoin and gold holdings—figures excluded from EBITDA calculations.

Looking ahead, Tether is projected to increase its USDT supply by $50–60 billion over the next year, resulting in an average supply of $170 billion. Assuming an average Federal Reserve interest rate of 4.2%, this would translate into approximately $7.4 billion in EBITDA for 2025. Using Circle’s valuation multiple, Tether’s market cap could reach the projected $515 billion.