Tether's Bold Move: Buying Majority Stake in South American Agribusiness Giant

Tether, the company behind the largest USDT stablecoin, has made an unexpected move by offering to buy a controlling stake in Adecoagro, a major agricultural company in South America. Adecoagro, which is Argentina's largest producer of milk and rice, also engages in sugarcane farming and renewable energy production in Brazil, and cultivates key crops like soybeans and corn in Argentina and Uruguay.

Adecoagro's board of directors received an offer from Tether to purchase outstanding common shares at $12.41 per share, which would raise Tether's ownership from its existing 19.4% stake to a majority 51% stake. Adecoagro has confirmed receipt of the proposal and is currently reviewing it with financial and legal advisors. The company has advised shareholders not to take any immediate action while the evaluation is underway.

Tether's interest in Adecoagro is part of its ongoing diversification strategy. The company initially entered Adecoagro's ownership structure in September 2024 with a $100 million investment for a 9.8% stake. Since then, Adecoagro's share price has fallen about 17% to $9.32, but after the news of the new Tether proposal, it has risen almost 18% and is currently at $10.98. Adecoagro's market capitalization is currently above $1.14 billion.

If the new deal goes through, it would mark another strategic move by Tether, following its acquisition of a minority stake in Juventus Football Club on Feb. 14. Tether's expansion beyond its core crypto business includes investments in other companies, such as the $18.75 million investment in Taiwan-based crypto exchange XREX and the $150 million investment in Nasdaq-listed bitcoin mining company Bitdeer. Tether has also signed memorandums of understanding with governments to explore blockchain technology and support digital transformation, including agreements with the governments of Guinea, Turkey, Uzbekistan, and the United Arab Emirates.

The bid also comes amid growing scrutiny of Tether's financial reserves. JPMorgan analysts recently claimed that the firm might need to liquidate its Bitcoin (BTC) holdings to comply with possible US stablecoin regulations. According to the analysts, only 66% of Tether's reserves meet compliance standards under the ST