Tether, the issuer of the popular USDT stablecoin, has invested $100 million in leading Latin American agricultural company Adecoagro, acquiring a 9.8% stake.
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.
Details of the Deal
Adecoagro, a key player in Latin America’s agricultural landscape, operates extensively in Argentina, Brazil, and Uruguay. The company manages over 193,000 hectares of sugarcane in Brazil, producing refined sugar and ethanol. Founded in 2002, Adecoagro now processes 550,000 liters of milk daily at its Buenos Aires plant and expanded into sugar, ethanol, and energy sectors in Brazil starting in 2005.
Future Plans
Alongside this agricultural investment, Tether is 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.
Tether's investment in Adecoagro shows the company's efforts to diversify its assets and mitigate risks associated with its core business of stablecoin issuance. This move can strengthen Tether's financial stability and open new growth opportunities.
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