Tether Acquires 31.9% Stake in Elemental Altus for $89.2 Million

Tether, the issuer of the world’s largest stablecoin USDT, has acquired a 31.9% stake in Elemental Altus Royalties Corp (ELE), a Canadian publicly listed gold royalties company. This investment marks a significant move by Tether into the gold royalties market, as part of its broader strategy to back its stablecoin with hard assets. Tether obtained 78,421,780 common shares of Elemental Altus through an offshore deal, with AlphaStream mediating an options trade to secure an additional 34,444,580 shares. This investment reflects Tether’s confidence in the gold market and its fundamentals, according to Tether CEO Paolo Ardoino.

Tether’s investment in Elemental Altus amounts to approximately $89.2 million, demonstrating its interest in diversifying into precious metals and tangible asset markets. The stablecoin USDT, operated by Tether, has a market capitalization of $155 billion. Elemental Altus, traded on the Toronto-based exchange, finances mining operations and receives royalties in return for the gold revenues, making it a low-risk investment option. Tether’s investment in Elemental Altus is part of its strategy to enhance the stability and transparency of its financial products by diversifying into the gold royalties market.

Tether’s complex asset strategy includes over 100,000 BTC and 80 tons of physical gold, in addition to its stablecoin Tether Gold XAUT. The company has been building a new financial infrastructure based on blockchain technology, aiming to create a more transparent and fair system for investors. By combining gold and Bitcoin in its portfolio, Tether allows investors to couple the two assets into one portfolio, further associating the two assets with one another. Tether’s gold stablecoin XAUT is further validated by its gold investments, and the company may also wish to invest in commodity-backed digital assets, requiring expertise in various business models such as gold royalties.

Tether’s investment in Elemental Altus is part of its core strategy to create a financial system backed by tangible assets. In Q1 2025, Tether bought around $735 million worth of Bitcoin, forming part of the company’s strategy to back up its financial instruments with real-world assets. Tether bought 8,888 BTC when the price was valued at around $82k, ranking it as the sixth-largest holder of Bitcoin worldwide. Tether’s accumulation treasury now includes over 100,000 BTC and around 80 tons of gold, demonstrating its commitment to amassing real-world assets to its portfolio. Tether’s investment in Elemental Altus is a significant move towards creating a gold-based backbone for the Tether USDT ecosystem, potentially collaborating with the Elemental Altus management board to develop financial products further.