Tether plans to raise up to $20 billion through stock issuance and considers tokenizing the shares after the stock offering is completed.

Foresight News reports that, according to Bloomberg, Tether plans to raise up to $20 billion through a stock issuance and will consider tokenizing the shares after the sale is completed. Sources familiar with the matter revealed that Tether executives are exploring various options, including share buybacks and, after the transaction, storing the company’s stock in digital form on the blockchain through tokenization. The sources also disclosed that at least one existing shareholder previously planned to sell shares at a price significantly below the company’s $500 billion valuation, but Tether intervened to prevent this plan. The sources further revealed that Tether’s management is concerned that existing investors’ sell-offs could impact its massive fundraising efforts. Due to the involvement of confidential information, these individuals requested anonymity. One insider stated that the company currently has no plans for existing shareholders to sell shares in this round of major financing. According to another insider, Tether’s investor Blockchain Capital considered selling some of its shares before the announcement of Tether’s fundraising plans but later decided to withdraw. The insider also added that Tether’s management did not attempt to prevent Blockchain Capital from selling its stock.