Tether Acquires 31.9% of Elemental Altus Royalties for CAD$121.55 Million

Tether Investments has recently acquired 31.9% of Elemental Altus Royalties Corp., a Canadian gold mining firm, from La Mancha Investments in a private deal. The acquisition involved 78,421,780 common shares, representing a significant stake in the company. This move is part of Tether's strategy to expand its real-world holdings and support its gold-backed digital asset, XAUT.

The investment in Elemental provides Tether with exposure to global gold production through a royalty and streaming model. This model reduces the direct operational risks associated with mining, aligning with Tether's preference for strategic, low-risk exposure to real-world assets. Tether CEO Paolo Ardoino emphasized that this investment signifies the firm’s ongoing commitment to backing its digital assets with reliable, tangible assets such as Bitcoin and gold.

In addition to the acquisition, Tether signed an option agreement with AlphaStream Limited and its subsidiary, Alpha 1 SPV Limited. This agreement allows Tether to purchase an additional 34,444,580 shares after October 29, 2025, unless Elemental grants permission to redeem them earlier. Both AlphaStream and Alpha 1 SPV are privately held companies incorporated under the laws of the Abu Dhabi Global Market.

Tether's investment in Elemental is part of its broader strategy to enhance the transparency, utility, and accessibility of digital assets backed by real-world value. The company currently holds more than 100,000 Bitcoin in its reserve, along with ownership of 80 tons of physical gold to support its XAUT token. This acquisition further strengthens Tether's position in the gold sector and its commitment to tangible assets.

The acquisition of Elemental shares was conducted via a private agreement outside of Canada and not through any stock exchange or other securities market. Prior to the acquisition, La Mancha owned approximately 31.9% of Elemental's shares, while Tether owned approximately 1.8%. Immediately following the completion of the La Mancha Share Acquisition, Tether owned and controlled approximately 33.7% of Elemental's shares.

The aggregate purchase price paid by Tether to La Mancha for the acquisition of the La Mancha Shares was CAD$121,553,759, representing a price per common share of CAD$1.55. Pursuant to the Alpha 1 Option Agreement, Tether will pay an option fee to Alpha 1 in an aggregate amount of CAD$3,444,458, representing a price per Alpha 1 Share of CAD$0.10. If Tether exercises the Alpha 1 Option, the exercise price will vary depending on when the option is exercised, with a minimum aggregate exercise price of CAD$51,839,092.90 and a maximum aggregate exercise price of CAD$53,389,099.

Tether's acquisition of Elemental shares is a strategic move that reflects its long-term vision for gold-backed financial infrastructure. The company's investment in Elemental aligns with its broader strategy to enhance the transparency, utility, and accessibility of digital assets backed by real-world value. This acquisition underscores Tether's commitment to tangible assets and precious metals, positioning the company as a key player in the gold sector.