The CEO of Tether (USDT) shared the valuation it will receive in case of the company's public offering: An unbelievable figure!

Tether CEO Paolo Ardoino stated that the company's market capitalization could reach 515 billion dollars in the event of a possible IPO.

This value makes Tether the 19th largest company in the world and surpasses giant names Costco and Coca-Cola. While acknowledging that this figure is impressive, Ardoino said that this estimate may be "a bit cautious" given the growing Bitcoin and gold reserves that Tether already has.

At the core of Tether's public offering evaluation is the current market capitalization of $30 billion of Circle, one of its biggest competitors in the sector. According to internal financial models, Circle is expected to reach an EBITDA value of $410 billion by 2025, which is being valued at a multiple of 69.3.

Tether, which announced a net profit of 13 billion dollars for the year 2024, is said to have obtained 7 billion dollars of this profit from treasury bonds and repo transactions. The remaining 5 billion dollars of profit consists of unrealized gains from Bitcoin and gold assets; these gains are not included in EBITDA calculations.

For the next year, Tether is projected to increase its USDT supply by another $50 to $60 billion, operating with an average supply of $170 billion. Combined with an average Fed interest rate of 4.2%, this translates to about $7.4 billion in EBITDA in 2025. According to the calculation based on Circle's valuation multiple, this EBITDA figure could enable Tether to reach a market cap of $515 billion.

*It is not investment advice.

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