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Tether’s $100 Million Agricultural Investment Marks a New Expansion Strategy

2 mins
Updated by Daria Krasnova
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In Brief

  • Tether has invested $100 million to acquire a 9.8% stake in Adecoagro, an agricultural company.
  • This move marks Tether’s diversification beyond its USDT stablecoin dominance.
  • Tether remains a leader in the crypto space with its USDT stablecoin dominating the market.
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Tether, the issuer of the world’s largest stablecoin, USDT, is further diversifying its operations by expanding into agriculture.

This move reflects Tether’s ongoing strategy to grow its business beyond its USDT offerings.

Tether Expands Beyond Finance Into Agriculture

According to a recent filing with the US Securities and Exchange Commission (SEC), Tether has invested $100 million to acquire a 9.8% stake in Adecoagro, a prominent agricultural company in Argentina.

This transaction, completed between July 29 and August 16, 2024, secured over 10 million shares for Tether. The filing also confirmed that the investment was funded with Tether’s working capital.

Adecoagro, valued at over $1 billion, operates in Argentina, Brazil, and Uruguay. It processes around 550,000 liters of milk daily and also generates renewable energy using biodigesters.

Read more: 9 Best Crypto Wallets to Store Tether (USDT)

Tether’s CEO, Paolo Ardoino, acknowledged the investment with a globe emoji on the platform X. However, Tether has not provided further comments on this acquisition.

While the move might seem unexpected for a company best known for its dominance in the stablecoin market, Tether has a track record of expanding into various sectors. This includes notable investments in Bitcoin mining, artificial intelligence, and education.

Meanwhile, Tether’s main business, its USDT stablecoin, remains the largest in the industry, with a market cap exceeding $118 billion. It operates across multiple blockchain networks and has focused on improving access to stablecoin solutions in emerging markets.

Ardoino noted that USDT had become the digital dollar for millions in regions underserved by traditional monetary systems.

“USDT has become the trusted digital dollar for hundreds of millions of people. It simply gives everyone access to stability, when they need it the most, regardless of their social status,” he stated.

Read more: A Guide to the Best Stablecoins in 2024

Tether's USDT Daily Revenue.
Tether’s USDT Daily Revenue. Source: Token Terminal

Tether’s efforts have paid off financially, generating over $13 million in daily revenue, according to Token Terminal.

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Oluwapelumi Adejumo
Oluwapelumi Adejumo is a journalist at BeInCrypto, where he reports on a broad range of topics including Bitcoin, crypto exchange-traded funds (ETFs), market trends, regulatory shifts, technological advancements in digital assets, decentralized finance (DeFi), blockchain scalability, and the tokenomics of emerging altcoins. With over three years of experience in the industry, his works have been featured in major crypto media outlets such as CryptoSlate, Coinspeaker, FXEmpire, and Bitcoin...
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