Tether, the company behind the world’s most widely used stablecoin, has expanded its investment footprint by acquiring a 32% stake in Canadian gold royalty company Elemental Altus Royalties.
In a statement released Thursday, Tether confirmed it purchased 78,421,780 common shares of Elemental (ELE) from La Mancha Investments. This acquisition amounts to roughly 31.9% of the company’s total outstanding shares.
The deal, finalized on Tuesday, was executed at CA$1.55 (approximately US$1.14) per share, bringing the total cost to around US$89.4 million, according to Elemental’s official announcement.
Tether says the move aligns with its broader objective of incorporating robust and long-term assets such as gold and Bitcoin into its ecosystem. The firm views this as both a safeguard and a step toward enhancing the digital economy’s foundational infrastructure.
A Gold-Linked Strategy Without Mining Exposure
By investing in Elemental Altus, Tether gains indirect access to global gold production through a royalty and streaming business model. This structure allows for revenue from gold without the complexities and risks of operating mining sites.
Tether noted this approach fits its strategic focus on low-risk exposure to real-world assets that can increase the transparency and durability of digital financial products.
CEO Paolo Ardoino commented on the development, emphasizing Tether’s growing interest in assets like gold and Bitcoin. He said this strategy supports the creation of a more transparent and resilient financial framework.
“Bitcoin offers a decentralized hedge against inflation, while gold remains a proven store of value,” Ardoino said.
“We’re not just investing — we’re laying the groundwork for the financial systems of the future.”
Strengthening Tether Gold and Future Token Plans
The Elemental acquisition also bolsters Tether’s gold-backed stablecoin, Tether Gold (XAUt), and reinforces its ability to hedge against inflation using a diversified portfolio of gold-linked assets.
Tether hinted that its latest move could pave the way for more commodity-backed digital assets in the near future.
Launched in 2020, XAUt has become the leading gold-backed cryptocurrency, reaching a market capitalization of $854 million in April, per CoinGecko data.
XAUt’s growth has paralleled the surge in gold’s market value, which climbed nearly 30% this year and peaked at $3,500 in April before dropping slightly to $3,388, based on TradingView figures.
Expanding Beyond Stablecoins
Tether’s Elemental stake is just the latest in a series of major investments following its record $13 billion profit in 2024 and its stated intention to broaden its business beyond stablecoins.
In May, Tether purchased $458.7 million worth of Bitcoin for Twenty One Capital, a BTC-focused investment firm preparing for a SPAC merger with Cantor Equity Partners.
In early June, the company transferred an additional $3.9 billion in Bitcoin to the same firm, making Tether the third-largest corporate Bitcoin holder behind Strategy and MARA.
Earlier this year, Tether also made strategic investments in Italian media outlet Be Water, the Juventus football team, and the crypto wallet Zengo.
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