Tether Acquires 31.9% Stake in Elemental Altus Royalties for 89.2 Million USD

Tether, a prominent issuer of stablecoins and gold-backed tokens, has acquired an approximate 31.9% stake in Elemental Altus Royalties Corp., a Canadian precious metals royalty company. This investment was made through Tether's affiliated but independent investment arm, Tether Investments. The acquisition provides Tether with diversified exposure to global gold production through a royalty and streaming model, which avoids the direct operational risks associated with mining. Elemental funds mining companies in exchange for royalties on future revenue or the right to purchase metals at discounted prices.

The acquisition was made at a price of 1.55 CAD ($1.14) per share, with Tether Investments purchasing 78,421,780 common shares in Elemental, valued at around 121.6 million CAD ($89.2 million). Including the 4,360,511 shares it already holds, Tether's total ownership will rise to 82,782,291 common shares, representing approximately 33.7% of the company's outstanding shares.

Elemental CEO Frederick Bell expressed enthusiasm about the partnership, stating, "Building on previous discussions with Tether, we are very pleased to officially welcome Tether as the company's new major shareholder. Their unmatched ability to support the company in its next phase of growth is exciting for all shareholders and is a positive for the gold royalty sector. Tether is one of the world’s largest companies, largest holders of US Treasuries, and a growing investor in the gold space."

This move aligns with Tether's broader strategy to integrate long-term, stable assets like gold and bitcoin into its ecosystem. The goal is to use these assets as a financial hedge and to support the development of robust and decentralized infrastructure for the digital economy. The shares were acquired from La Mancha Investments S.à.r.l., with the transaction completed offshore via a private agreement on June 10.

In addition to the initial acquisition, Tether Investments has signed an agreement with AlphaStream Limited and its wholly owned subsidiary, Alpha 1 SPV Limited, granting it the option to acquire an additional 34,444,580 Elemental common shares. This option, currently worth around $38.7 million, cannot be exercised before October 29, 2025, unless approved by Elemental, and is subject to certain terms and conditions. If the option is exercised, Tether would hold 117,226,871 common shares, representing about 47.7% of the company's outstanding shares.

Tether CEO Paolo Ardoino highlighted the strategic importance of this investment, stating, "Tether's growing investments in gold and bitcoin reflect our forward-looking strategy to build a more resilient and transparent financial system. 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. This is not just about investment — it's about building financial infrastructure for the next century."

Tether Group has recently disclosed holdings of over 100,000 BTC and nearly 80 tons of physical gold, alongside its Tether Gold (XAUT) token, which is backed by physical gold. This investment complements Tether's long-standing belief that tangible assets like bitcoin and gold will underpin the most durable forms of digital value. Tether Investments stated that it may seek further collaboration with Elemental's leadership on governance and long-term strategy, subject to applicable regulations and market conditions.