Tether’s Bold Move: Stablecoin Giant Eyes Gold Mining Investments to Fortify Reserves
Tether—the controversial stablecoin behemoth—just made a power play that's shaking both crypto and traditional finance circles. Their latest move? Strategic talks to pour capital into gold mining operations.
Why This Matters
This isn't just diversification—it's a direct hedge against the very fiat systems Tether claims to complement. By backing USDT with physical gold, Tether could create an unstoppable hybrid: digital convenience with ancient-store-of-value credibility.
Market Impact
Gold-backed crypto assets immediately surged on speculation. Mining stocks—especially junior explorers—saw unusual pre-market activity. Traders are betting this triggers a domino effect across reserve-backed stablecoins.
The Cynical Take
Because nothing says 'stable' like tying your digital dollar substitute to an asset that swings 20% on geopolitical tweets and central bank whims. Classic finance meets crypto volatility—what could possibly go wrong?
From crypto to commodities: where Tether is putting its money in 2025
Tether isn’t just about gold. Profits from its stablecoin business are being actively deployed across multiple sectors, from self-custody tools to agriculture and royalty firms, with its investments spanning more than 120 companies.
In February, the firm made a stratgeic investment in Zengo Wallet, a self-custody app that uses multiparty computation to secure digital assets. A few months later, in April, Tether closed a major deal in Latin America by purchasing a 70% stake in Adecoagro, an agriculture and energy group, in a transaction valued at $600 million. The company has since said Adecoagro’s renewable energy will also be directed into powering bitcoin mining operations in Brazil.
Tether further acquired 78.4 million shares in Elemental Altus Royalties from La Mancha Investments in June, giving it a 31.9% stake. The deal, worth about $205 million, also came with an option to buy an additional 34.4 million shares. That same month, the firm backed Orionx, a Chile-based crypto exchange, providing capital to help expand its platform.
Most recently, in August, Tether made its way into Europe and Latin America’s digital asset markets by acquiring a minority stake in Bit2Me. It also led a €30 million funding round to support the platform’s expansion in both regions.
