Quick take:
Tether Investments bought 78,421,780 common shares of Elemental at 1.55 CAD ($1.14) for a 31.9% stake in the gold-focused investment company.
The company also signed an optional agreement with AlphaStream Limited and its subsidiary, Alpha 1 SPV Limited, to purchase an additional 34,444,580 Elemental common shares, exercisable after October 29.
The investment is part of Tether’s “dual pillar” investment strategy that features a treasure trove of over 100,000 bitcoins.
Tether has expanded its “dual pillar” investment strategy with a minority stake in the Canada-listed gold-focused investment company Elemental Altus Royalties Corp, announced on Thursday.
The stablecoin issuer’s investment arm bought 78,421,780 common shares of Elemental at 1.55 CAD ($1.14) for a 31.9% stake in the gold-focused investment company for a total value of C$121.6 million ($89.2 million).
Tether Investments also signed a non-obligatory optional agreement with AlphaStream Limited and its subsidiary, Alpha 1 SPV Limited, to purchase an additional 34,444,580 Elemental common shares, exercisable after October 29.
The minority stake fits in well with Tether’s dual pillar strategy that seeks to diversify its business by investing in long-term stable assets like bitcoin and gold. The company already holds over 100,000 bitcoins according to a recent statement by CEO Paolo Ardoino.
Commenting on the announcement Tether wrote in a blog post: “The investment marks a significant step in Tether’s broader strategy to integrate long-term, stable assets such as gold and Bitcoin into its ecosystem, both as a financial hedge and as part of its commitment to building robust, decentralized, and resilient infrastructure for the digital economy.”
Paolo Ardoino, CEO of Tether: “Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value. By gaining exposure to a diversified portfolio of gold royalties through Elemental, we are strengthening the backing of our ecosystem while advancing Tether Gold and future commodity-backed digital assets.”
Tether’s diversification into other asset classes is not starting just now. Last year, the company invested $100 million in the Bitcoin mining startup Bitdeer. It also invested $200 million in the biotech startup, Blackrock Neurotech. More recently, the USDT stablecoin issuer ramped up its investment in sports by increasing its stake in the Serie A football club Juventus FC.
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The post Tether Advances Its “Dual Pillar” Investment Strategy with $89M Stake in Elemental Altus appeared first on NFTgators .
