Tether, the company behind the world's largest stablecoin by market capitalization, USDT, has ventured into the agriculture and food sector.
Tether, the company behind the world's largest stablecoin by market capitalization, USDT, has ventured into the agriculture and food sector. The firm recently acquired a 9.8% stake in Adecoagro, a prominent Latin American agricultural company, for $100 million. This marks Tether's first foray into the agricultural industry, signaling a diversification in holdings.
Tether has historically directed its funds towards areas such as artificial intelligence, peer-to-peer platforms, Bitcoin mining operations, and digital education initiatives. This new investment suggests that Tether is exploring opportunities beyond the tech sector.
According to a filing with the U.S. Securities and Exchange Commission, Tether used its own working capital to finance the Adecoagro investment. The purchase resulted in Tether acquiring 10,048,249 shares of the agricultural company, which accounts for nearly 10% of Adecoagro's outstanding common shares.
Adecoagro, established in 2002, is known for its milk production operations in Argentina, boasting a processing capacity of 550,000 liters per day at its Buenos Aires plant. In 2005, Adecoagro expanded its portfolio by entering the sugar, ethanol, and energy businesses in Brazil, further solidifying its position in the region's agricultural sector.
Tether has been actively expanding its offerings. The company recently announced plans to launch a new stablecoin pegged to the United Arab Emirates dirham (AED). This initiative, developed in collaboration with UAE-based Phoenix Group and Green Acorn Investments, aims to create a digital version of the dirham that is fully backed by liquid UAE-based reserves.
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