Cryptocurrency firm Tether, known for its stablecoin USDT, has invested $100 million in the major Latin American agricultural firm, Adecoagro.
Adecoagro's Operations
Adecoagro is a key player in the Latin American agricultural market, operating in Argentina, Brazil, and Uruguay. In Argentina, the company is a leading milk producer, processing 550,000 liters daily at its Buenos Aires plant. It also manages over 193,000 hectares of sugarcane in Brazil, producing refined sugar and ethanol.
Tether's Investment Strategy
Tether's investment in Adecoagro is part of the company's broader strategy to explore opportunities beyond cryptocurrency. Previously, Tether has invested in green energy, Bitcoin mining, artificial intelligence, and education. Tether believes that investments in agriculture will help mitigate risks associated with its core business of stablecoin issuance and enhance financial stability through diversified investments. In its filing, Tether disclosed that the $100 million investment was funded from its own working capital, giving Tether ownership of 10,048,249 Adecoagro shares, representing nearly 10% of the company's outstanding common shares.
Future Plans
In addition to this agricultural investment, Tether plans to launch a new stablecoin pegged to the United Arab Emirates dirham (AED). This new stablecoin will be developed in partnership with the 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 its plans to launch a new stablecoin highlight the company's commitment to diversifying its assets and strengthening its position in global markets.
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