Ah, Tether! The issuer of the world’s largest stablecoin, which, let’s be honest, sounds like a title from a bad sci-fi novel. They’re at it again, this time snatching up a 32% stake in Canada’s gold royalty firm, Elemental Altus Royalties. Because, you know, why not add a sprinkle of gold to their digital coin salad? 🥗✨
On a fine Thursday, Tether Investments announced they’ve acquired a whopping 78,421,780 common shares of Elemental (ELE) from La Mancha Investments. That’s 31.9% of Elemental’s issued and outstanding shares, in case you were wondering. And the price? A mere $1.55 Canadian dollars ($1.14) per share. All in all, Tether is out about $89.4 million. Chump change, right? 💸
This investment is a milestone in Tether’s grand plan to integrate long-term, stable assets like gold and Bitcoin into their ecosystem. It’s like they’re trying to build a digital economy fortress, one shiny brick at a time. 🏰
Exposure to Gold Without the Mining Drama
By acquiring those ELE shares, Tether is aiming for diversified exposure to global gold production through a royalty and streaming model. This means they can enjoy the glitter of gold without the hassle of mining. No pickaxes or hard hats required! 🏗️
“This model aligns with Tether’s preference for strategic, low-risk exposure to real-world assets,” they said. Because who doesn’t want to avoid the operational risks of gold mining? It’s like choosing to eat a chocolate cake without the calories. 🍰
Tether CEO Paolo Ardoino, who sounds like he should be leading a tech revolution, highlighted their growing investments in gold and Bitcoin. He claims it’s all part of a “forward-looking strategy to build a more resilient and transparent financial system.” Sounds fancy, doesn’t it? 🧐
“Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value.”
“This is not just about investment — it’s about building financial infrastructure for the next century,” Ardoino added. Because who doesn’t want to think about the next century while sipping coffee? ☕️
Implications for Tether Gold
Besides hedging against inflation, Tether’s new gold royalty portfolio allows them to strengthen the backing of their ecosystem and advance their gold-backed stablecoin, Tether Gold, or XAUt (XAUT). It’s like they’re building a digital treasure chest! 🏴☠️
The announcement also teases more commodity-backed digital assets in the pipeline. Because why stop at gold when you can have a whole buffet of commodities? 🍽️
Since its launch in 2020, Tether’s XAUt stablecoin has become the largest gold-backed cryptocurrency, reaching a market cap of $854 million in April. Talk about striking gold! 🥇
XAUt’s rise coincided with gold prices soaring about 30% year-to-date, peaking at $3,500 in April. But alas, gold prices have taken a slight dip, now sitting at $3,388. It’s like watching your favorite stock plummet after you’ve invested. 📉
Tether’s Active Buying Spree
Tether’s acquisition of Elemental Altus Royalties is just another feather in their cap after posting a record-breaking profit of $13 billion last year. They’ve officially moved beyond stablecoins, which is like a toddler learning to ride a bike without training wheels. 🚴♂️
In May, Tether bought $458.7 million worth of Bitcoin (BTC) for Twenty One Capital, a Bitcoin investment firm. They’re just throwing money around like confetti at a parade! 🎉
They also moved another $3.9 billion in BTC to Twenty One Capital in early June, making them the third-largest corporate BTC holder. It’s like they’re collecting Bitcoin like Pokémon cards! 🃏
Tether has also taken a 30% stake in Italian media company Be Water, invested in the Juventus football club, and backed the self-custodial crypto wallet Zengo. They’re like the Oprah of investments: “You get a stake! And you get a stake!”
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2025-06-12 18:25