Tether Holdings Ltd, the blockchain technology company that issues the USDT stablecoin, has diversified its investment again. In its latest move, Tether entered the agricultural industry through Latin America’s Adecoagro.
Tether and Adecoagro – The New Bond
Adecoagro confirmed the investment in a filing with the United States Securities and Exchange Commission (SEC). Per the document, Tether now holds a 9.8% stake in the company. The stablecoin issuer obtained this stake for $100,000,000.
Effectively, Tether now holds 10,048,249 common shares in the Latin American agro firm. Tether is known for its strategic investments in high-profile markets. While its diversification from the crypto ecosystem is new, its bets thus far have a common theme.
This theme features firms or businesses whose impact on human development is high. Adecoagro checks this box as a dairy producer with interests worldwide. Its Latin American interests are visible in Brazil, Argentina, and Uruguay.
While the firm has not disclosed many details about the Adecoagro deal, the community considers this a good bet. As a firm focused on growth, Tether may help Adecoagro expand its business interests.
According to the filing, the funds for the Adecoagro bet came from the stablecoin issuer’s operating cash. Considering that Tether commands significant profit in its USDT business, there is a chance that it may increase its stake over time.
Tether and Its Investment Portfolio
The firm started as a stablecoin firm and has played a crucial role as the biggest issuer in the industry. Over the years, Tether has dominated the industry, commanding a $118.2 billion capitalization for USDT.
Per data from DeFiLlama, USDT commands a 69.69% dominance of the stablecoin market. The company thought it was fitting to expand its reach by relying on this dominance. The firm’s most publicized investment came in April when it invested $200 million in BlackRock Neurotech.
This startup is researching brain-computer service providers seeking to commercialize medical solutions. This investment marked a complete deviation for the company, suggesting its new portfolio diversification strategy.
Since becoming CEO, Paolo Ardoino has charted the company’s affairs more aggressively. The firm remains one of the biggest holders of US Treasury Bills.
It uses this government-backed investment product as one of its stablecoin reserves. The TBills have helped legitimize the company’s reserve standing. This is important as it has always had to correct narratives regarding the valuation of its USDT capitalization.
Besides the direct investment in established companies, Ardoino is also a big proponent of disruptive innovations. One of these is Keet.io, a privacy-focused messaging platform.
The Massive Bitcoin Embrace
Tether might have gained prominence for its USDT product, but the company believes in the potential of Bitcoin. Because of this, the firm has been making strategic investments in Bitcoin mining ventures over the past year.
The company is pursuing its Bitcoin mining push, understanding that mining is crucial for a resilient BTC network. The stablecoin firm currently has operations in El Salvador and Paraguay, and it plans to expand worldwide.
As it stands, Tether is boosting its reach in the broader ecosystem beyond integration with new protocols like The Open Network (TON). With its strategic investments, the firm hopes to evolve into more than just a crypto or stablecoin firm.
