Tether has shelled out $100 million to acquire a 9.8% stake in Nasdaq-listed Latin American agricultural giant Adecoagro.
Details
- Tether unveiled that it “used cash from its own working capital” for the Adecoagro investment
- The stablecoin giant now owns 10,048,249 shares of Adecoagro. That translates to 9.8% of the outstanding common shares
- Founded more than two decades back, Adecoagro is a top milk producer in Argentina
- Its Buenos Aires plant has a processing capacity of 550 thousand liters per day
- The latest purchase is in line with the company’s quest to spend its profits on “diverse investment opportunities”
Why should you pay attention? Details
- This marks Tether’s first investment in the agriculture and food sector
- It’d be interesting to see how it eventually pans out and if other crypto giants would follow suit under the diversification label
Who said what?
The Tether team said,
- "Tether views land as a crucial asset class, complementing its existing investments in Bitcoin and gold. Land is inherently scarce, provides long-term yield, and has historically served as a safe haven during periods of geopolitical instability"
They added,
- "We believe that investing in land, agriculture, and related ventures is essential to our journey toward creating value for humanity through sustainable development"
Zooming out
- Earlier this year, Tether re-organized into four new divisions: Tether Power [to manage investments in Bitcoin mining], Tether Finance [to oversee the USDT stablecoin], Tether Data [to manage investments in tech companies], and Tether Education [to roll out education initiatives]
- On the heels of the development, Tether entered into a subscription agreement with BitDeer. The USDT stablecoin issuer agreed to buy up to $150 million worth of shares of the Bitcoin mining company
- Tether is also looking to develop and launch a stablecoin pegged to the United Arab Emirates Dirham [AED] in collaboration with local multi-billion dollar tech conglomerate, Phoenix Group
- It recently also rolled out USDT on the Aptos blockchain
- Bottom line: Tether’s broader strategy is to make digital currency “more accessible and useful” to people around the world and all its initiatives are linked to this mission one way or the other
