Tether Diversifies with $100M Investment in Adecoagro
Tether, the world's largest stablecoin issuer, has invested $100 million to acquire a 9.8% stake in Adecoagro, a Latin American agricultural company with a presence in Argentina, Brazil, and Uruguay. This acquisition, completed between July 29 and August 16, 2024, involved purchasing over 10 million shares and was funded using Tether’s working capital. The move is part of Tether's strategy to diversify its investments beyond its core stablecoin offerings, which include ventures in Bitcoin mining, artificial intelligence, and digital education.
Adecoagro, valued at over a billion dollars, now counts Tether as its third-largest shareholder. This is Tether's first investment in the agricultural and food sector, aiming to provide exposure to a different industry and potentially increase overall returns. The investment comes at a time of growing competition in the stablecoin market, with new entrants like PayPal USD. Despite this, Tether continues to lead the industry, with a market capitalization of $168 billion as of August 26. Additionally, Tether has announced plans to double its workforce by 2025, focusing on enhancing its development, investment, and compliance teams.
