Tuesday, January, 21, 2025

Tether Goes for Gold: Bold 32% Stake Shakes Up Crypto Investment Strategy

Tether acquires 32% of a gold royalty firm, doubling down on Bitcoin, gold, and asset diversification to strengthen USDT.
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Areeba Rashid

Areeba Rashid is a dedicated crypto news writer with a passion for making complex topics accessible to everyone. She covers the latest developments in the crypto world, including in-depth price analysis, helping readers stay informed and make sense of market trends.
  • Tether invests in gold royalties firm to strengthen USDT backing through stable, non-mining-based income exposure.
  • The CEO confirms 50 tons of gold and 100K BTC holdings to hedge inflation and build financial resilience.
  • Option agreement allows future purchase of 34M shares, deepening exposure to the gold sector in 2025.

Tether has officially announced that it has acquired a 32% stake in gold mining company Elemental Altus Royalties Corp, based in Canada, obtaining 78,421,780 shares. This move by the stablecoin issuer is a continuation of its strategy to diversify reserves and financial risk hedging. Such a strategic investment continues to build the support USDT has as it looks to shore up its stability and credibility in the market.

This purchase is just in after its CEO, Paolo Ardoino, announced that Tether had already purchased 50 tons of gold and 100,000 Bitcoins. Ardoino stated that the increasing interest in gold and Bitcoin is a forward-looking way of developing a robust and clear financial system. He pointed out that Bitcoin is safe against inflation, and gold is a long-proven store of value.

Low-Risk Mining Exposure

Elemental Altus Royalties is a unique company in the gold business because it earns revenues not by mining but by royalty streams. This implies that the company enjoys the benefits of mining results without actually doing the physical mining or incurring the risks. To Tether, this investment is a stable gold market entry point and a decreased risk of volatile operational factors.

Tether additionally obtained an option over AlphaStream Limited, permitting it to buy another 34,444,580 shares after October 29, 2025. Elemental must approve this future purchase. In the case of its approval, it would enable Tether to expand its impact and strengthen its position in the gold investment sector. The deal is a long-term indication of the intention to use precious metals as a part of the overall Tether asset portfolio.

This move comes at a time when institutions are becoming more interested in Bitcoin and gold, which are the only two major assets that have given returns exceeding 40% in the last twelve months. Bitcoin has overtaken gold in the U.S. for the first time, indicating a changing investor appetite and pointing to why the dual investment focus of Tether is picking up.

Source: X

Tether Expands Digital Assets

In addition to gold and Bitcoin, Tether already has Tether Gold (XAUT), a digital currency that is backed by physical gold. However, the stablecoin issuer remains committed to integrating conventional finance and digital innovation, fostering a more balanced and inflation-resistant asset base. This is a diversification move to help USDT solidify its place in a dynamic and competitive crypto space.

Tether recently also announced that it would open-source its Bitcoin Mining Operating System (MOS) to help smaller miners and decentralization. With its infrastructure innovation and physical assets investments, Tether is becoming a major player in both traditional and digital financial systems.

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