Source: Blockchain Knight
Tether, the issuer of the world's largest stablecoin USDT, is expanding into the agricultural sector to further diversify its business. The move reflects Tether's ongoing strategy to develop its business beyond the USDT product.
According to a recent filing with the SEC (U.S. Securities and Exchange Commission), Tether invested $100 million to acquire a 9.8% stake in Adecoagro, a well-known Argentine agricultural company.
The transaction was completed between July 29 and August 16, 2024, and Tether obtained more than 10 million shares. The document also confirmed that the funds for the investment came from Tether's working capital.
Adecoagro is valued at more than $1 billion and operates in Argentina, Brazil and Uruguay. The company produces about 550,000 liters of milk per day and also uses biofermentation tanks to produce renewable energy.
Tether CEO Paolo Ardoino sent a globe emoji on the X platform to approve the investment.
While the move may seem unexpected for a company known for its dominance in the stablecoin market, Tether has a strong track record of expanding into various sectors. Including notable investments in BTC mining, artificial intelligence, and education.
Meanwhile, Tether's main business, the USDT stablecoin, remains the largest stablecoin in the industry, with a market capitalization of over $118 billion.
USDT operates on multiple blockchain networks and focuses on improving access to stablecoin solutions in emerging markets.
Ardoino pointed out that USDT has become a digital currency for millions of people in some areas underserved by traditional monetary systems.
"USDT has become a digital currency trusted by hundreds of millions of people. USDT allows everyone to get stable currency when they need it most, regardless of their social status."
According to Token Terminal data, Tether's investment strategy has reaped rich rewards, with daily revenue exceeding $13 million.
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