Tether diversifies portfolio with $100 million investment in Latin American agricultural giant
Tether, which operates the world’s largest stablecoin USDT by market capitalization, has expanded into the agriculture and food sector. The company recently acquired a 9.8% stake in Adecoagro, a prominent agricultural company in Latin America, for $100 million. This is Tether’s first foray into the agriculture industry and signals a diversification of its holdings.
Tether has previously directed funding to areas such as artificial intelligence, peer-to-peer platforms, Bitcoin mining operations, and digital education initiatives. This new investment signals that Tether is exploring opportunities beyond the technology sector.
Tether used its own working capital to finance the Adecoagro investment, according to a filing with the U.S. Securities and Exchange Commission. With this acquisition, Tether will acquire 10,048,249 shares of the agricultural company’s stock, representing approximately 10% of Adecoa Agro’s outstanding common shares.
Founded in 2002, Adecoagro is known for its milk production operations in Argentina, with a processing capacity of 550,000 liters per day at its Buenos Aires factory. In 2005, Adecoagro expanded its portfolio by entering sugar, ethanol and energy businesses in Brazil, further strengthening its position in the region’s agricultural sector.
Tether has been aggressively expanding its services. The company recently announced plans to issue a new stablecoin pegged to the United Arab Emirates dirham (AED). The initiative, developed in collaboration with UAE-based Phoenix Group and Green Acorn Investments, will create a digital version of the dirham fully backed by UAE-based liquid reserves. intended to create.
