Tether, the issuer of the world’s largest stablecoin USDT, is broadening its business horizons by venturing into the agricultural sector, marking a strategic move to diversify its operations beyond its stablecoin product.
Recent filings with the SEC reveal that Tether has invested $100 million to acquire a 9.8% stake in Adecoagro, a prominent Argentine agricultural firm. The transaction, completed between July 29 and August 16, 2024, resulted in Tether acquiring over 10 million shares of Adecoagro. The investment was funded from Tether’s operational capital.
Adecoagro, valued at over $1 billion, operates in Argentina, Brazil, and Uruguay. The company produces approximately 550,000 liters of milk daily and generates renewable energy through bioreactors.
Tether’s CEO, Paolo Ardoino, endorsed the investment with an Earth emoji on the X platform, highlighting his support.
Although it might seem surprising for a company known for dominating the stablecoin market to invest in agriculture, Tether has a history of expanding into various sectors, including significant investments in Bitcoin mining, artificial intelligence, and education.
Meanwhile, Tether’s core business—USDT—remains the largest stablecoin in the industry with a market cap exceeding $118 billion. USDT operates across multiple blockchain networks and focuses on enhancing access to stablecoin solutions in emerging markets.
Ardoino emphasized that USDT has become a vital digital currency for millions in underserved traditional financial systems. “USDT has become a trusted digital currency for hundreds of millions, providing stability in times of need, regardless of social status.”
According to Token Terminal data, Tether’s investment strategy is proving highly profitable, with daily earnings exceeding $13 million.
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