Tether Investments, the investment arm of stablecoin issuer Tether (USDT), has acquired a significant minority stake of approximately 33.7% in Elemental Altus Royalties (ELE), a Canadian publicly-listed precious metals investment company. The acquisition involved around 78.4 million shares purchased from Luxembourg-based mining investment firm La Mancha Investments, with Tether’s stake valued at nearly $88 million as of announcement time.
This strategic move aims to diversify the asset backing of Tether's flagship stablecoin USDT by expanding into tangible assets such as gold and precious metals. Elemental Altus offers Tether exposure to global gold production via a royalty and streaming model, which reduces direct mining operational risks. Tether’s CEO Paolo Ardoino highlighted the investment as a reflection of confidence in gold’s fundamental value and a critical financial market role.
Additionally, Tether has an option agreement to potentially acquire up to approximately 34.4 million more Elemental shares in the future, thereby increasing its position. The investment aligns with Tether’s "dual pillar strategy," balancing gold holdings alongside its substantial Bitcoin reserves of over 100,000 BTC (valued at roughly $10.7 billion).
This asset diversification is also seen as preparation for upcoming U.S. stablecoin regulations, which may require issuers to demonstrate robust and diversified asset backings. Tether’s move into a royalty-based gold exposure and existing physical gold reserves supporting its Tether Gold (XAUT) token underscores its commitment to tangible asset-backed digital tokens.
The announcement positively impacted Elemental Altus’s Toronto-listed shares, which surged nearly 23% immediately post-news and settled 6.25% higher than pre-announcement levels. This investment also cements Tether’s broader strategy to advance commodity-backed digital asset infrastructure, leveraging both gold and Bitcoin holdings to reinforce its ecosystem.