Tether invests in Gold mining - Owns 31.9% of Elemental

Tether Invests in Elemental Altus Royalties

According to an announcement from Tether, the purchase of 78,421,780 Elemental shares from La Mancha Investments, worth approximately CAD 121.6 million ($89.2 million) at CAD 1.55 ($1.14) per share, was completed on June 10, 2025 through a separate agreement outside of Canada. The deal gives Tether a 31.9% stake in Elemental, a company focused on gold royalty and streaming revenue streams, generating profits from gold production without the direct operational risks of mining.

Tether also entered into an option agreement with AlphaStream Limited and its subsidiary Alpha 1 SPV Limited, allowing it to purchase an additional 34,444,580 shares (worth approximately $38.7 million), which could increase its ownership to 47.7% if approved by Elemental after October 29, 2025. The move was described by Tether CEO Paolo Ardoino as “a strategic step to build a more transparent and sustainable financial system,” incorporating gold and Bitcoin as two key pillars of Tether’s ecosystem.

Tether's Diversification Strategy

Tether, with a market capitalization of $155 billion, is the world's largest stablecoin, accounting for more than 60% of the stablecoin market. The company has posted a record $13 billion in profits in 2024, allowing it to expand its investments into areas beyond crypto, such as gold, Bitcoin, artificial intelligence, and media. Tether currently holds more than 100,000 BTC ($10.7 billion) and nearly 80 tons of physical gold, along with its Tether Gold (XAUT) token, which has a market capitalization of $854 million and is backed by gold.

The Elemental stake purchase comes amid a surge in gold prices, which peaked at $3,500 an ounce in April 2025, up 30% year-to-date, according to CoinGecko. Gold continues to be viewed as a safe haven asset amid inflation and economic uncertainty. Meanwhile, the crypto market has also been buoyant, with $50 billion in institutional inflows into Bitcoin and Ethereum ETFs in Q1 2025, and projects like Plasma (which raised $500 million for a Bitcoin-backed stablecoin) signaling a trend toward integrating real assets into blockchains.

Elemental Altus Royalties, with its diversified portfolio of gold royalty, including 2% Net Smelter Return (NSR) at Capricorn’s Karwinda project, provides Tether with a stable income stream from gold production without the risk of direct mining. This move reinforces Tether’s “dual pillar” strategy, combining gold and Bitcoin to strengthen its reserves and support digital financial products such as XAUT.

Challenges and risks

While promising, the deal is not without risks:

• Gold price movements: Gold prices have fallen slightly from $3,500 to $3,388 an ounce, according to TradingView, which could impact the value of Tether's portfolio.

• Regulatory Risk: The option agreement to purchase additional shares is subject to Elemental approval and Canadian regulations, which could cause delays or obstacles.

• Competition in the stablecoin industry: Competitors like Circle (with USDC and an $8.1 billion IPO) and projects like Plasma are increasingly integrating real assets, requiring Tether to constantly innovate to maintain its leadership.

Conclusion

Tether’s purchase of a 31.9% stake in Elemental Altus Royalties and the option to increase its ownership is a strategic move that will deepen the company’s involvement in real assets and strengthen the stablecoin ecosystem. With gold and Bitcoin as its two pillars, Tether is building a sustainable digital financial platform that leverages the power of both traditional assets and blockchain. However, price volatility and regulatory risks remain challenges to overcome.

This event could pave the way for new digital financial products and spur a wave of real-world investment in the crypto industry. Could Tether shape the future of digital finance alongside gold and Bitcoin? Stay tuned for the latest developments!

Once again we give our opinion on potential projects in the crypto market. This is not investment advice, consider your portfolio. Disclaimer: The views expressed in this article are solely those of the author and do not represent the platform in any way. This article is not intended to be a guide to making investment decisions.

Compiled and analyzed by HCCVenture

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