Tether, the issuer behind the nearly $150 billion USDT stablecoin, has finalized the purchase of a 70% stake in the Latin American agricultural firm Adecoagro (AGRO), which boasts a market capitalization of nearly one billion dollars. This acquisition marks a significant expansion for Tether into the agricultural sector.
The investment journey began in September 2024, when Tether initially invested $100 million in Adecoagro for a 9.8% stake. This was followed by an offer to increase their holding to 51% in February, culminating in a controlling interest of 70% achieved in March. This strategic move positions Tether favorably in a vibrant sector characterized by both food production and bioenergy.
Read more: Tether’s $100M Investment in LatAm Agriculture Firm May Be a Tokenization Play
The acquisition grants Tether control over one of the region’s leading producers of food and renewable energy. Adecoagro operates sugar mills, rice farms, dairy production, and various renewable energy assets across Brazil, Argentina, and Uruguay.
A spokesperson for Tether articulated the organization’s ambition to enhance Adecoagro’s production capabilities while aligning with its broader mission of promoting economic freedom through decentralized finance and investments in underserved markets. This collaborative effort could signal a paradigm shift in how agricultural assets are managed and tokenized.
Pivotal to this expansion is Tether’s asset tokenization initiative, Hadron, launched last year. This platform aims to simplify the conversion of various real-world assets—including bonds, commodities, stocks, and loyalty points—into digital tokens on blockchain networks. As such, Tether is laying the groundwork for a future where traditional industries seamlessly integrate with digital finance.
Read more: Tether Unveils New Platform to Simplify Asset Tokenization for Businesses, Nation-States
Paolo Ardoino, CEO of Tether, remarked, “By aligning with Adecoagro’s proven expertise in agriculture and renewable energy, we are taking another concrete step toward bridging traditional industries with the future of decentralized finance and economic empowerment.”
Post-acquisition, Adecoagro’s board has seen a reshuffle, with five members stepping down and being replaced by executives affiliated with Tether’s strategic interests. Notably, Juan Sartori, a Uruguayan businessman with extensive political and agricultural experience, has assumed the role of chairman.
In the past year alone, Tether has diversified its ventures, launching initiatives in bitcoin mining, artificial intelligence, and encrypted communication platforms. Following the announcement of this strategic acquisition, Adecoagro’s shares increased by 2.6% on the stock market.
Read more: Tether’s $100M Investment in LatAm Agriculture Firm May Be a Tokenization Play
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