Bloomberg reports that Tether is pursuing a potential capital raise of up to $20 billion through a stock issuance, with the option to tokenize the equity once the deal closes.

Sources familiar with the matter indicate executives are weighing options, including potential stock buybacks, and the prospect of holding the shares as digital assets on the blockchain after the transaction.

Earlier, a current shareholder reportedly planned to divest at a price well below the company’s $50 billion valuation, a sale Tether has moved to block.

Management asserts that such divestitures could undermine future financing activity and liquidity planning, prompting enhanced governance scrutiny and a disciplined capital-market strategy.