Tether, the issuer of the popular USDT stablecoin, has invested $100 million in Adecoagro, acquiring a 9.8% stake in the company.
Tether’s Investment in Adecoagro
Adecoagro, a key player in Latin America’s agricultural landscape, operates extensively in Argentina, Brazil, and Uruguay. The company is a leading milk producer in Argentina and manages over 193,000 hectares of sugarcane in Brazil, producing refined sugar and ethanol.
Tether's Investment Strategy
This investment in Adecoagro is part of Tether’s broader strategy to explore opportunities beyond cryptocurrency. Historically, Tether has invested in various sectors, including green energy, Bitcoin mining, artificial intelligence, and education. In its filing, Tether disclosed that the $100 million investment was funded from its own working capital. The acquisition gives Tether ownership of 10,048,249 shares of Adecoagro, representing nearly 10% of the company’s outstanding common shares.
Future Plans
Alongside this agricultural investment, Tether is also planning to launch a new stablecoin pegged to the United Arab Emirates dirham (AED). This new stablecoin will be developed in partnership with Phoenix Group and Green Acorn Investments and will be backed by reserves from the UAE. Tether’s USDT remains the largest stablecoin by market capitalization, valued at over $118 billion according to CoinMarketCap.
Tether’s investment in Adecoagro and plans for a new stablecoin demonstrate the company's efforts to diversify its assets and enhance financial stability.
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