Tether, the issuer of the world’s largest stablecoin, USDT, has made a noteworthy investment in the South American agricultural firm Adecoagro SA, acquiring shares worth about $102 million between July 29 and August 16.
The transaction, which represents 9.8% of Adecoagro’s total outstanding shares, makes Tether the third-largest shareholder of the company, according to recent filings.
Adecoagro, which is listed on the Nasdaq under the ticker AGRO, is Argentina’s leading producer of milk and rice. The company has a market capitalization of just under $1.2 billion, also engages in sugarcane farming and renewable energy in Brazil, as well as planting crops like soybeans and corn in Argentina and Uruguay.
Tether expands its investment portfolio
A spokesperson for Tether described the investment as part of the company’s strategy to diversify its portfolio and spend profits on varied opportunities. “Tether views land as a crucial asset class, complementing its existing investments in Bitcoin and gold. Land is inherently scarce, provides long-term yield, and has historically served as a safe haven during periods of geopolitical instability,” the spokesperson said.
In April, Tether announced a reorganization into four divisions: Tether Finance, overseeing the USDT stablecoin; Tether Data, managing investments in bitcoin mining; Tether Tech, focusing on strategic investments in technology companies; and Tether Edu, leading educational initiatives. It is not clear which division handled the Adecoagro investment.
Following a record profit of $5.2 billion in the first half of 2024, Tether revealed plans to double its workforce by 2025, focusing on its development, investment, and compliance teams, according to CEO Paolo Ardoino.
The company has also invested in other businesses, such as Taiwan-based crypto exchange XREX and Nasdaq-listed bitcoin miner Bitdeer, as part of its broader strategy to invest in diverse sectors including land, agriculture, and related ventures for sustainable development.
