Stablecoin issuer Tether has finalized a significant investment, acquiring a 32% stake in Canada-based gold royalty company Elemental Altus Royalties (ELE).
The transaction, completed Tuesday, involved Tether’s investment arm purchasing approximately 78.4 million common shares at $1.14 USD per share, equating to around $89.4 million.
Strategic Gold Exposure
Tether’s investment aims to gain diversified exposure to gold production via Elemental’s royalty and streaming model, circumventing direct mining operational risks. This approach is described as aligning with Tether’s “preference for strategic, low-risk exposure to real-world assets.”
“Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value.”
“This investment is a continuation of Tether’s strategy to enhance transparency and resilience within the digital financial infrastructure,” noted Tether.
Implications for Tether Gold ()
The acquisition underscores Tether’s commitment to bolstering its gold reserves, as evidenced by its recent launches of the Tether Gold (
Tether indicated that its broader portfolio in gold and other commodities supports the backing necessary for its ecosystem and points toward potential advancements in its gold-related stablecoin and future commodity-backed digital assets.
