Tether Investments Acquires 31.9% of Elemental Shares from La Mancha Investments

Tether Investments recently acquired 31.9% of Elemental shares from La Mancha investments in a private deal. Elemental is a gold mining firm listed in Canada.

Stablecoin issuer Tether has acquired a 31.9% stake in Elemental Altus Royalties (TSX: ELE) from La Mancha in a private deal.

As disclosed in a press release on June 12, the investment arm of Tether has acquired 78.4 million shares of the Canadian gold royalty and streaming company. The agreement, dated June 10, marks a significant investment by Tether.

This investment builds upon Tether’s previous initiative to expand its holdings in real-world assets. It also provides exposure to gold, complementing Tether’s existing gold-backed digital asset, XAUT. Elemental Altus Royalties provides exposure to global gold production through a royalty and streaming model, reducing the direct operational risk of mining.

“This model aligns with Tether’s preference for strategic, low-risk exposure to real-world assets,” the press release stated.

On the same day, Tether also entered into an option agreement with AlphaStream Limited and its subsidiary, Alpha 1 SPV Limited, both private companies incorporated under the laws of the Abu Dhabi Global Market.

This private agreement grants Tether the option to purchase an additional 34,444,580 shares of Elemental after October 29, unless Elemental grants permission to redeem them earlier.

“This investment in Elemental further demonstrates Tether’s commitment to backing its tokens with a mix of liquid assets, such as Bitcoin, and less liquid, longer-term assets, such as gold, in keeping with its disclosed asset-backed token model,” the statement reads.

Tether’s investments are part of a broader strategy to expand its cryptocurrency offerings and provide users with more options for investing in digital assets.

Earlier this year, Tether announced plans to open-source its Bitcoin Mining Operating System. This move aims to empower various companies to utilize Tether’s vast mining infrastructure in a decentralized manner.

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