Tether Acquires Stake in Gold Royalty Firm Elemental Altus
Tether, the issuer behind the USDT stablecoin, has acquired a 33.7% stake in Elemental Altus Royalties Corp., a gold-focused Canadian royalty company, for approximately C$121.6 million (~$88M USD). The purchase involved 78.4 million shares from La Mancha Investments at C$1.55 per share. Tether also holds an option to raise its stake to 47.7% later this year.
This move reflects Tether’s evolving “dual pillar” strategy, where it balances exposure between Bitcoin (over 100,000 BTC held) and gold, the latter of which it supports via its Tether Gold (XAUT) product.
🔑 Why It Matters
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Diversifying Reserves: By investing in gold through royalty models, Tether reduces reliance on crypto-only reserves, which may support stronger regulatory resilience.
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Low-Risk Gold Exposure: A royalty company like Elemental Altus allows Tether to benefit from gold production revenues without the risks of mining operations.
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Strategic Timing: The investment comes as gold hovers near all-time highs (~$2,450/oz), and as Tether strengthens its presence in real-world asset-backed finance.
Tether’s CEO Paolo Ardoino emphasized the alignment of this investment with its goal of building a more stable, asset-backed financial infrastructure. As regulations tighten and stablecoins evolve, this move signals Tether’s intent to remain both compliant and strategically diversified.
