Tether's former Chief Investment Officer (CIO), Richard Heathcote, is reportedly planning to sell his stake in the stablecoin issuer, according to two people familiar with the matter. This development comes as Tether continues its efforts to secure a $500 billion valuation through a major fundraising round, aiming to raise between $15 billion and $20 billion for a 3% stake. Heathcote's planned exit and the sale of his stake could signal shifting dynamics within the company's executive structure, especially as he was instrumental in nurturing Tether’s relationship with Cantor Fitzgerald.
Heathcote recently handed over the reins of his investment role to his deputy, marking a significant transition in Tether’s management. His departure raises questions about the company’s internal stability and its ambitious valuation goals. Tether has been seeking to solidify its institutional credibility and expand its U.S. footprint, even launching a new U.S.-compliant stablecoin, USAT, in January through Anchorage Digital Bank with Cantor Fitzgerald managing its reserves.
While Tether boasts over $10 billion in profit last year and has become one of the largest holders of U.S. Treasuries, the fundraising efforts have reportedly dragged on longer than anticipated. Potential investors have also expressed concerns about the impact of lower interest rates on Tether's profitability. At a $500 billion valuation, Tether's top shareholders, including CFO Giancarlo Devasini (estimated 44-45% stake), CEO Paolo Ardoino (19%), and former CEO Jean-Louis van der Velde (19%), stand to become some of the world's richest individuals, with Devasini's stake potentially exceeding the net worth of Warren Buffett. The company's management has stated it does not urgently need the capital due to its high profitability but seeks the funding for legitimacy and market influence.
