Tether's Gold Expansion Thwarted as GROY Implements Poison Pill Defense

Tether, the issuer of the world's largest stablecoin USDT with over $183 billion in circulation, has been aggressively diversifying its reserves, which are primarily composed of U.S. Treasuries (74%) and approximately $13 billion in gold as of its September 30 attestation. This gold exposure includes investments in royalty companies like Elemental Altus Royalties and Metalla Royalty, aligning with its strategy to hedge against market volatility.

In late October 2025, Tether disclosed an 8.1% stake in Gold Royalty Corp (GROY), a Vancouver-based firm with a portfolio of over 200 gold-focused royalties. By early November, Tether increased its ownership to above 10%, crossing regulatory thresholds and sparking speculation of a potential takeover. This rapid accumulation highlighted Tether's ambitions to consolidate its position in the gold royalty sector.

In response, GROY's board adopted a Shareholder Rights Plan, or "poison pill," on November 5, 2025, effective immediately for three years. The plan triggers if any investor, including Tether, acquires more than 15% of GROY's shares, granting other shareholders the right to purchase additional stock at a 50% discount to market value. This would dilute the acquiring party's voting power and economic interest by roughly half, as noted by commentator Matthew Sigel on social media.

Tether has not formally announced a buyout intent, but its investment pattern suggests a broader push into tangible assets. The standoff underscores growing tensions between cryptocurrency entities and traditional financial firms, with GROY's move aimed at protecting shareholder equity and deterring unsolicited control.