Tether Expands Its "Dual Pillar" Investment Strategy with a Minority Stake in Elemental Altus Royalties

Tether has expanded its “dual pillar” investment strategy with a minority stake in the Canada-listed gold-focused investment company Elemental Altus Royalties Corp

Tether, the issuer of the largest stablecoin USDT, has taken a minority stake in the Canada-listed gold-focused investment company Elemental Altus Royalties Corp (CVE:ELE), according to a statement on Thursday.

Tether Investments, the investment arm of the stablecoin issuer, bought 78,421,780 common shares of Elemental at 1.55 CAD ( $1.14) for a 31.9% stake in the gold-rated investment company for a total value of C$121.6 million($89.2 million).

The investment firm also signed an 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 the company’s business by investing in long-term stable assets.

The company is already known to hold over 100,000 bitcoins according to a recent statement by CEO Paolo Ardoino and has been investing in startups across various industries.

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.”

Ardoino added: "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."

Earlier this year, Tether launched its gold-backed stablecoin, named Tether Gold, in partnership with investing firm Gold Value. The stablecoin is backed by one gram of gold held in London's vaults.

The USDT stablecoin issuer has been diversifying into other asset classes. 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.