Tether Acquires 70% Stake in Adecoagro for $100 Million

Tether, the issuer of the USDT stablecoin, has completed the acquisition of a 70% stake in Adecoagro, a prominent Latin American agricultural firm. This strategic move positions Tether to significantly influence one of the region's leading food and bioenergy producers, which operates sugar mills, rice farms, dairy operations, and renewable energy assets across Brazil, Argentina, and Uruguay.

Tether's investment in Adecoagro began in September 2024 with a $100 million investment for a 9.8% stake. This was followed by an offer to increase its stake to 51% in February, and finally, Tether raised its stake to 70% in March, securing a majority control over the company.

With this majority stake, Tether aims to scale Adecoagro's output and align the company with its mission of promoting "economic freedom" through decentralized finance and investment in underserved markets. This move is seen as part of Tether's broader ambition to tokenize real-world assets, as evidenced by the launch of its asset tokenization service, Hadron, last year. Hadron is designed to simplify the process of converting various real-world assets into digital tokens on blockchain rails.

Paolo Ardoino, CEO of Tether, stated, "By aligning with Adecoagro’s proven expertise in agriculture and renewable energy, we are taking another concrete step toward bridging traditional industries with the future of decentralized finance and economic empowerment."

Following the acquisition, Adecoagro's board underwent a reshuffle, with five members stepping down and being replaced by executives aligned with Tether's strategic goals. Juan Sartori, a Uruguayan businessman with interests in politics and agriculture, took over as the new chairman.

Tether's recent ventures include initiatives in bitcoin mining, AI, and encrypted communications, demonstrating the company's diverse and expanding portfolio. This acquisition of Adecoagro is a significant step in Tether's strategy to integrate traditional industries with decentralized finance, leveraging its expertise in blockchain technology to drive economic growth and innovation.