Tether Makes Surprise $89M Move into Gold Royalties to Diversify Beyond Crypto - Crypto Economy

TL;DR

• Tether acquired 31.9% of Elemental Altus Royalties for $89.2 million, raising its total stake in the Canadian firm to 33.7%.
• It also secured an agreement to purchase an additional 34.4 million shares for $38.7 million, with the option to execute it from October 2025.
• The deal is part of its strategy to add physical assets and gold royalties to its balance sheet, alongside bitcoin, physical gold, and its Tether Gold token.

Tether completed the purchase of a 31.9% stake in Elemental Altus Royalties, a Canadian company focused on precious metals royalties, for $89.2 million.

Details of the Deal

The transaction was carried out through Tether Investments, an independent subsidiary within the group. With this acquisition, the company adds 78.4 million shares to the 4.3 million it already held, increasing its total ownership to 33.7% of Elemental’s capital.

The investment was finalized through a private offshore agreement in which Tether purchased the shares from La Mancha Investments. In addition, it signed a separate deal granting it the option to acquire another 34.4 million shares for approximately $38.7 million. This right cannot be exercised before October 29, 2025, unless Elemental itself authorizes an earlier execution.

Tether’s interest in Elemental aligns with its strategy of integrating physical and decentralized assets into its reserves and financial products. Through the Canadian firm, it gains indirect exposure to global gold production without getting involved in mining operations. Elemental specializes in financing extraction projects in exchange for royalties on future revenues or preferential rights to acquire metals at discounted prices.

Tether Bets on Two of the Best Value Reserves

This acquisition adds to the hard assets the company already holds on its balance sheet. Currently, the firm controls over 100,000 Bitcoins, valued at $10.7 billion, and owns nearly 80 tons of physical gold. Part of this strategy includes Tether Gold (XAUT), a token backed by bullion, which has become a key product within its range of physically backed digital assets.

As CEO Paolo Ardoino explained, combining bitcoin and gold makes it possible to build a solid, decentralized financial foundation for the coming years. Investing in gold royalties strengthens that structure by diversifying income without taking on the operational risks of the mining industry.

Tether also left open the possibility of collaborating with Elemental’s management on governance and corporate strategy matters, in accordance with regulations and market conditions. The deal was carried out in compliance with Canadian regulations governing private placements and changes in shareholder control