Tether, the issuer of the $144 billion dollar stablecoin USDT, has taken a significant step by increasing its stake in the Latin American agricultural firm Adecoagro (AGRO). In a strategic move, Tether has proposed a $12.41 per share offer, which is contingent upon fulfilling certain closing conditions, raising its ownership stake in Adecoagro from 51% to 70%. This acquisition reflects Tether’s commitment to diversifying its investment portfolio.
Following the announcement, AGRO shares saw a notable rise, jumping over 7% to reach $11.95 in pre-market trading. Adecoagro operates within the agricultural sector, with a focus on sugar, ethanol, dairy, and crop production across Argentina, Brazil, and Uruguay. The company manages an impressive 210,400 hectares of farmland and several industrial facilities throughout these countries and boasts a market cap of just under $1.12 billion.
Tether views its investment in Adecoagro as a strategic allocation in the secure and tangible asset class of land, complementing its existing holdings in bitcoin (BTC) and gold. As Tether’s CEO Paolo Ardoino stated in Thursday’s announcement, “Our investment aligns with Tether’s broader strategy to back infrastructure, technology, and businesses that advance economic freedom and resilience.” This sentiment underscores Tether’s vision for sustainable growth and stability amid a volatile financial landscape.
In addition to its agricultural investments, Tether is also expanding its presence in the entertainment sector. The company recently acquired a 30.4% stake in the Italian media company Be Water for 10 million euros (approximately $10.8 million). This move highlights Tether’s dedication to modern media innovation and complements its recent acquisition of a minority stake in Juventus FC, one of Italy’s most prominent soccer clubs.
As Tether continues to diversify its investments across various sectors, its focus on agricultural and entertainment ventures sets the stage for a multifaceted approach to market engagement. Investors and stakeholders alike will be keenly observing how these strategic moves unfold in the coming months.
