Tether, the issuer of the world’s largest stablecoin, has made a significant investment by acquiring a 32% stake in Canada’s gold royalty firm, Elemental Altus Royalties. This strategic move demonstrates Tether’s ongoing strategy to integrate stable assets such as gold and Bitcoin into its growing ecosystem.
The acquisition saw Tether purchasing 78,421,780 common shares from La Mancha Investments for approximately $89.4 million, translating to a price of $1.55 CAD ($1.14 USD) per share. This investment is aimed at providing Tether with diversified exposure to gold production through a royalty and streaming model, which mitigates the risks associated with direct gold mining operations.
According to Tether’s leadership, this model aligns with their preference for strategic and low-risk investments in real-world assets. This was emphasized by Tether’s CEO, Paolo Ardoino, who stated, “Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value.” This acquisition not only signifies a robust investment but also underscores Tether’s commitment to building a transparent financial infrastructure that is poised for future stability.
Tether’s foray into gold investments appears timely, especially with the recent surge in gold prices—around 30% year-to-date—making this stake acquisition particularly attractive. Adding to the allure is Tether’s existing gold-backed stablecoin, Tether Gold (XAUt), which has gained traction since its launch in 2020. With a market cap that hit $854 million in April, Tether Gold is positioned to benefit greatly from this new investment in Elemental Altus, bolstering its credibility and backing.
This acquisition joins other significant actions by Tether, including recent purchases of $458.7 million worth of Bitcoin and stakes in various companies. These moves highlight Tether’s proactive strategy in diversifying its assets and strengthening its position in the digital asset ecosystem. As Tether continues to navigate the competitive landscape of digital finance, its latest investment pathways illustrate a forward-looking approach aimed at creating a resilient and stable economic framework.
