Tether has strategically acquired a significant 9.8% stake in Adecoagro, one of Latin America’s dominant forces in the agricultural industry, for an impressive $100 million. This acquisition was revealed through a recent filing with the U.S. Securities and Exchange Commission (SEC).

Adecoagro, a pivotal player in the region’s agricultural landscape, oversees more than 193,000 hectares in Brazil, primarily dedicated to the production of sugar and ethanol. The company’s extensive operations also span across Argentina and Uruguay, focusing on soybean and corn cultivation.

The SEC filing details that Tether utilized its own working capital for this purchase, securing over 10 million shares of Adecoagro. This move elevates Tether to the position of Adecoagro’s third-largest shareholder, underscoring its substantial influence within the company.

Listed on the Nasdaq under the ticker AGRO, Adecoagro originally concentrated on dairy farming. However, since 2005, it has diversified into various sectors, including sugar, ethanol, and renewable energy. This diversification strategy has enabled the company to establish a robust presence in the agricultural sector.

This acquisition signifies Tether’s inaugural venture into the agriculture and food sector, a notable deviation from its previous investment focus. However, it aligns with Tether’s overarching strategy to diversify its investment portfolio.

A spokesperson from Tether emphasized the strategic importance of land as an asset class. “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 stated.

Tether is renowned for its investments in emerging technologies, including crypto mining operations, peer-to-peer platforms, and artificial intelligence (AI). Over the past two years, Tether’s venture capital arm has injected approximately $2 billion into AI and alternative financial infrastructures. The company perceives AI as a transformative technology capable of enhancing operational efficiency and unlocking new business opportunities across various sectors such as healthcare and finance.

Tether is also well-known for its substantial investment in Bitcoin. As of early 2024, Tether’s Bitcoin holdings neared 80,000 BTC, valued at over $5 billion based on current market prices.

Leading the stablecoin market with its flagship product USDT, Tether’s market cap for USDT exceeded $118 billion as of September 8, 2024, according to CoinGecko’s data. The company has proactively expanded USDT across multiple blockchains, including Ethereum, Tron, and Polygon. Recently, Tether announced the deployment of USDT on the Aptos network to enhance global accessibility and usability of digital currencies.

In response to increasing competition within the stablecoin market, particularly with Ripple’s forthcoming stablecoin RLUSD, Tether is preparing to launch a new stablecoin pegged to the United Arab Emirates Dirham (AED). This initiative is in collaboration with UAE-based firms and aims to facilitate international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations for businesses and individuals in the UAE.

Tether also aims to pioneer in the UAE’s crypto market by seeking licensing under the UAE Central Bank’s Payment Token Services Regulation, a newly established framework governing digital asset transactions.

In June, Tether introduced a new line of digital assets backed by gold, branded as Alloy by Tether. The first token in this lineup is a gold-backed synthetic dollar known as aUSDT. According to Tether, this product merges the stability of the U.S. dollar with the value-preserving attributes of gold, offering users a reliable store of value. Built on the Ethereum blockchain, Alloy by Tether facilitates seamless integration with decentralized finance (DeFi) platforms.

aUSDT is backed by Tether Gold (XAUT) and employs overcollateralization along with auditable smart contracts to ensure transparency and security. This structure mitigates the volatility typically associated with cryptocurrencies. Despite its innovative concept, reception has been lukewarm, with reports indicating minimal trading volume since its launch. As of late July 2024, only $34 worth of aUSDT had been transacted within a 24-hour period.