Tether has spent $100 million to buy a small part (9.8%) of Adecoagro, a big agriculture company in Latin America. Tether views this investment as part of its strategy to diversify its portfolio beyond its core stablecoin business.
The company sees land as a crucial asset class that can provide long-term yield and serve as a safe haven during periods of geopolitical instability.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Tether used funds from its working capital to purchase over 10 million shares of Adecoagro between July 29 and August 16, 2024.
This transaction makes Tether the third-largest shareholder in the company, which has a market value of over $1 billion.
Tether Inc. is the creator of the Tether stablecoin – USDT pegged to the US dollar, meaning that 1 USDT is intended to equal 1 USD. This stability helps users avoid the price swings typical of other cryptocurrencies like Bitcoin.
Tether offers a range of stablecoins designed to provide a stable digital currency option. The primary product is Tether (USDT), which is pegged to the US dollar at a 1:1 ratio.
This means that 1 USDT is intended to equal 1 USD, providing users with a less volatile digital asset compared to traditional cryptocurrencies.
In addition to USDT, Tether also provides other stablecoins tied to different fiat currencies, including EURT (Euro), CNHT (Chinese Renminbi), and MXNT (Mexican Peso). Tether has even introduced XAUT, which is pegged to gold, allowing users to hold a digital asset backed by a physical commodity.
Tether tokens can be used across various blockchain platforms, making them versatile for transactions, trading, and payments.
Adecoagro is a diversified agriculture and food production company in Argentina, Brazil, and Uruguay. The company focuses on sugar, ethanol, renewable energy production, dairy farming, and crop production.
This investment by Tether comes amid increasing competition in the stablecoin market, with new entrants such as PayPal’s USD-pegged stablecoin and Ripple’s upcoming RLUSD. Tether continues to lead the market with USDT, which has a market capitalization exceeding $118 billion as of September 2024.
Recently Tether announced plans to launch a stablecoin pegged to the United Arab `Emirates’ Dirham (AED), and this came shortly after it had launched Alloy, a gold-backed stablecoin. As part of its diversification plans, Tether has also delved into the world of Artificial Intelligence. Tether plans to develop cutting-edge AI models through partnerships with other firms for product integration and community engagement.
