Tether Invests $100M in Latin American Agriculture Leader

The stablecoin leader steps into the agricultural sector, reinforcing its diversification strategy with a 9.8% stake in Adecoagro.

Tether, the company behind the world’s largest stablecoin, USDT, has made a significant move into the agricultural sector by acquiring a 9.8% stake in Adecoagro, a leading player in Latin American agribusiness. This $100 million investment was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC), marking a new chapter for Tether as it diversifies its investment portfolio.

Adecoagro, listed on Nasdaq under the ticker AGRO, manages over 193,000 hectares in Brazil, focusing primarily on sugar and ethanol production. Over the years, the company has expanded into renewable energy and the cultivation of soybeans and corn across Argentina and Uruguay. This acquisition makes Tether the third-largest shareholder of Adecoagro, highlighting the stablecoin issuer’s interest in exploring non-crypto investments.

This foray into agriculture represents a departure from Tether’s typical focus on digital and emerging technologies. A spokesperson for Tether explained that the move aligns with the company's broader strategy to diversify its holdings. “Tether views land as a crucial asset class, complementing its existing investments in Bitcoin and gold. Land is inherently scarce, provides long-term yield, and has historically served as a safe haven during periods of geopolitical instability,” the spokesperson noted.

Tether is well-known for its active participation in cryptocurrency mining, peer-to-peer platforms, and artificial intelligence (AI) technologies, having invested over $2 billion into these sectors over the past two years. As of early 2024, Tether’s Bitcoin holdings exceeded 80,000 BTC, valued at more than $5 billion. This latest venture into agriculture highlights Tether’s ambition to balance its high-risk digital investments with stable, long-term asset classes like land.

Meanwhile, Tether continues to dominate the stablecoin market with USDT’s market cap surpassing $118 billion as of September 2024, according to CoinGecko. Tether has also been expanding USDT’s presence across multiple blockchain networks, including Ethereum, Tron, and Polygon. Most recently, Tether announced plans to launch a new stablecoin pegged to the UAE Dirham (AED) in collaboration with UAE-based firms, aiming to facilitate international trade and remittances.

This investment in Adecoagro may signal further diversification as Tether seeks new opportunities outside of cryptocurrency, continuing to build on its vision of being a pioneer across various sectors.

photo source / Blockonome