Tether, the issuer of the leading stablecoin, has taken a significant step in its investment strategy by acquiring a 32% stake in Canadian gold royalty firm Elemental Altus Royalties. The purchase involved 78,421,780 common shares, completed at a price of $1.55 Canadian dollars ($1.14) per share, totaling around $89.4 million. Tether's aim is to enhance its ecosystem with stable assets such as gold and Bitcoin, which it describes as a hedge and a part of creating a resilient digital economy.
By gaining exposure to Elemental, Tether is opting for a royalty model that mitigates the operational risks typically associated with gold mining. This aligns with Tether's preference for strategic investments in real-world assets that can bolster transparency and stability in digital finance. Tether’s CEO, Paolo Ardoino, emphasized the importance of both gold and Bitcoin as methods to build a long-term financial infrastructure. He noted, "Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value."
Tether's strategy to invest in gold royalties could also strengthen its existing products, particularly Tether Gold (XAUt), a gold-backed stablecoin that has established itself in the market with a cap of $854 million as of April. The acquisition comes amid a trend of rising gold prices, which increased by 30% year-to-date before experiencing a slight decline.
This move follows Tether's recent investments, including significant purchases of Bitcoin and stakes in the Italian media company Be Water and the Juventus football club. With a recorded profit of $13 billion last year, Tether seems poised to continue its diversification into commodity-backed digital assets.
By gaining exposure to Elemental, Tether is opting for a royalty model that mitigates the operational risks typically associated with gold mining. This aligns with Tether's preference for strategic investments in real-world assets that can bolster transparency and stability in digital finance. Tether’s CEO, Paolo Ardoino, emphasized the importance of both gold and Bitcoin as methods to build a long-term financial infrastructure. He noted, "Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value."
Tether's strategy to invest in gold royalties could also strengthen its existing products, particularly Tether Gold (XAUt), a gold-backed stablecoin that has established itself in the market with a cap of $854 million as of April. The acquisition comes amid a trend of rising gold prices, which increased by 30% year-to-date before experiencing a slight decline.
This move follows Tether's recent investments, including significant purchases of Bitcoin and stakes in the Italian media company Be Water and the Juventus football club. With a recorded profit of $13 billion last year, Tether seems poised to continue its diversification into commodity-backed digital assets.
