The investment arm of the stablecoin tether issuer bought a third in Elemental Altus (Ele), a precious metal investment company that is quoted on the stock market, for C $ 121.6 million ($ 89.2 million).
Tether Investments aims to diversify the assets that support its USDT stable, the world’s largest token with a market capitalization of $ 155 billion, expanding to tangible assets and precious metals, according to an announcement on Tuesday.
Tether acquired 78,421,780 common shares in Elemental de la Mancha Investments, a mining investment firm based in Luxembourg.
The shares that quote in Toronto de Elemental increased almost 23% to C $ 1.77 ($ 1.30) after the announcement. They closed to C $ 1.53 on Wednesday, 6.25% higher than before Tether’s investment. At the time of publication, Tether’s participation is worth almost $ 88 million.
The CEO Paolo Ardoino said that the investment reflects its “confidence in the foundations of gold and its critical role in financial markets.”
“The elementary royalty model provides a diversified exposure to the production of gold worldwide, strategically aligning with our tied gold vision and a future digital infrastructure of assets backed by basic products,” he added.
Tether referred to increasing his exposure to gold as a “double pillar strategy”, along with his holdings of more than 100,000 BTC ($ 10.7 billion).
With the regulation of the stables on the horizon in the US, the emitters such as Tether are preparing for the requirements to be met when it comes to the assets that support their tokens.
This could be extended to the diversification of assets. JPMorgan suggested that Tether could have to sell part of his BTC to comply with the proposed regulation.
Update (June 12, 14:12 UTC): Add the purchase price to the holder, first paragraph.
