Tether acquires 32% stake in Canadian-listed Gold mining company Elemental
- Tether has announced the acquisition of a 32% stake in Elemental, a publicly listed Gold-focused royalty company based in Canada.
- The acquisition marks a major milestone in Tether’s long-term goal to integrate assets such as Gold and Bitcoin into its ecosystem.
- Tether Investments entered into another agreement, Alpha 1, for an option to purchase additional Elemental shares.
Tether Group, the issuer of the world’s largest stablecoin USDT through its affiliate Tether Investments, has completed the acquisition of a 32% stake in Elemental Altus Royalties Corp. (Elemental). The development comes amid an intentional shift by Tether to strengthen its grip on long-term assets such as Gold and Bitcoin and as part of a strategic mission to build a robust and decentralized digital economy infrastructure.
Tether doubles down on Gold investments
Tether Investments has acquired 78,421,780 common shares of Elemental after signing an agreement with La Mancha Investments, representing approximately a 31.9% stake in the Gold mining company.
According to a press release published on Thursday, “the transaction was completed offshore via private agreement.” Additionally, Tether signed an optional agreement with AlphaStream Limited and Alpha 1 SPV Limited, its fully owned subsidiary, to purchase a total of 34,444,580 Elemental common shares. If followed through, the deal will take place outside of Canada before October 29, pending approval from Elemental.
“Tether’s growing investments in Gold and Bitcoin reflect our forward-looking strategy to build a more resilient and transparent financial system,” Paolo Ardoino, Tether’s CEO, said.
Ardoino stressed in the press release that, like Bitcoin (BTC) continues to mature as a hedge against monetary inflation, Gold keeps fostering its status as the tested store of value.
Tether’s interest in Gold aims to diversify its portfolio and enhance the backing of its stablecoin ecosystem.
“This is not just about investment—it’s about building financial infrastructure for the next century,” Ardoino added.
Advancing dual strategy for Gold and Bitcoin
Tether is the issuer of the largest stablecoin, USDT, boasting a market capitalization of approximately $155 billion. In recent years, the company has shown a strong interest in diversifying its portfolio, adopting a dual-pillar strategy that incorporates Bitcoin and Gold.
The company revealed in recent reports that it currently holds 10,000 BTC, with its Gold stack sitting close to 80 tons (physical metal) in addition to its Tether Gold (XAUT), a Gold-backed token.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
บทความแนะนำ
