Tether, known for its stablecoin USDT, has taken a step towards diversifying its assets by acquiring a stake in Canadian Elemental Altus Royalties Corp. This news has significantly impacted the stock market.
Tether's Deal with Elemental Altus
Tether acquired a 31.9% stake in Elemental Altus Royalties Corp (ELE), a Canadian gold royalties company, for approximately $89.2 million. The deal was conducted through offshore structures to ensure the safety of such a substantial transaction. As part of this deal, Tether also engaged in options trades mediated by AlphaStream to obtain an additional 34.4 million shares.
Market Reaction and Management Comments
Following the announcement of the stock purchase, the price of ELE jumped by 23%, reaching around $1.30. Tether's CEO Paolo Ardoino mentioned that this investment reflects the company's confidence in the gold market. He added that such moves aim to maintain the stability of the company's financial products.
Tether's Asset Strategy
Tether's complex asset strategy includes accumulating both digital and traditional assets. The company's portfolio consists of over 100,000 BTC and 80 tons of physical gold. Ardoino emphasized that gold and Bitcoin are significant elements in creating a transparent financial infrastructure, making gold investments emotionally safer for long-term commitments.
Tether's investment in gold royalties marks a significant step in establishing a new financial presence in the market. It may also serve as the foundation for future financial products, allowing Tether to solidify its position as a reliable player in the asset markets.
