In Brief: Tether Acquires Gold Royalty Stake
Stablecoin leader Tether has expanded its portfolio to include significant positions in Bitcoin and gold, citing a strategy for a “resilient and transparent financial system.”
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El Salvador-based Tether Invests in Canadian Gold Royalty Firm
- Tether, the issuer of the third-largest cryptocurrency by market cap, has acquired a substantial stake in Canada-based Elemental Altus Royalties Corp. (ELEMF).
- The company acquired approximately 78.4 million shares, representing about 31.9% of Elemental’s share capital, through investment advisor La Mancha Investments.
- The acquisition cost was approx. $89 million USD ($121.5 million CAD). Elemental’s stock was trading near $1.14 per share at the time.
Bold Crypto Investment Strategy Confirmed
“Tether’s growing investments in gold and Bitcoin reflect our forward-looking strategy… [constituting a] ‘dual pillar strategy’ to build a more resilient and transparent financial system,” said CEO Paolo Ardoino.
“Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation,” Mr. Ardoino stated, “gold continues to be a time-tested store of value.”
Extensive Cryptocurrency Holdings Documented
- Tether maintains reserves backing its flagship stablecoin, USDT. These reserves reportedly include:
- Nearly 100,000 BTC, currently valued at approximately $10.7 billion.
- Approximately 80 metric tons of physical gold.
Tether additionally issues XAUT, a stablecoin explicitly backed by gold reserves, establishing itself as a market participant with significant physical holdings of both primary assets.
