Tether Acquires 31.9% Stake in Elemental Altus for $90 Million

Tether, the issuer of the USDT stablecoin, has taken a significant step in its long-term strategy by acquiring an equity stake in Elemental Altus Royalties, a firm specializing in gold royalties. This move is part of Tether's broader plan to diversify its reserves with traditional assets, particularly gold, to hedge against macroeconomic risks and put profits to work.

On June 12, Tether disclosed that it had secured 78.4 million common shares from La Mancha Investments, which accounts for roughly 31.9% of Elemental Altus’ outstanding shares. The stake is valued at nearly $90 million, based on Elemental’s recent share price. Tether also entered into an option agreement with AlphaStream Limited, allowing it to acquire an additional 34.4 million shares. This option, however, cannot be exercised before October 29, 2025, unless otherwise approved by Elemental’s board. If exercised, Tether’s combined holdings would represent close to 48% of Elemental’s total equity.

Beyond the equity purchase, Tether indicated it may explore further involvement with Elemental’s leadership and governance. Future collaboration could include discussions around long-term capital strategy and operational partnerships, subject to regulatory approval and prevailing market conditions. This move aligns with Tether's strategy to diversify its reserves with traditional assets, particularly gold, to hedge against macroeconomic risks and put profits to work.

Tether CEO Paolo Ardoino emphasized that the move reflects the company’s broader strategy to diversify its reserves with traditional assets. He stated, “Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value. By gaining exposure to a diversified portfolio of gold royalties through Elemental, we are strengthening the backing of our ecosystem while advancing Tether Gold and future commodity-backed digital assets.”

Over the years, Tether has steadily incorporated Bitcoin and gold into its portfolio. The company owns more than 100,000 Bitcoin and nearly 80 tons of physical gold. Ardoino added, “We believe in financial systems that are backed by real assets, not just promises… tangible assets like Bitcoin and gold will underpin the most durable forms of digital value.”

Through Elemental’s royalty and streaming model, Tether gains exposure to gold production without assuming the direct risks tied to mining operations. The company views this approach as an efficient way to link real-world assets to its growing blockchain-based products. This strategic move by Tether underscores its commitment to diversifying its reserves and strengthening the backing of its ecosystem with tangible assets.