Tether amplifies gold strategy with around $90 million stake in Elemental Altus

Tether has taken a new step in its long-term strategy of diversifying outside its primary stablecoin issuance business.

On June 12, the USDT stablecoin issuer disclosed that it acquired an equity stake in Elemental Altus Royalties, a firm specializing in gold royalties.

According to the firm, on June 10, it secured 78.4 million common shares from La Mancha Investments. This stake accounts for roughly 31.9% of Elemental Altus’ outstanding shares.

Though Tether did not specify the purchase price, the stake is valued at nearly $90 million, based on Elemental’s recent share price of 1.5 Canadian dollars ($1.15), according to Google Finance data.

Tether has also entered into an option agreement with AlphaStream Limited that would allow it to acquire an additional 34.4 million shares. This option, however, cannot be exercised before October 29, 2025, unless otherwise approved by Elemental’s board.

If exercised, Tether’s combined holdings would represent close to 48% of Elemental’s total equity.

Beyond the equity purchase, the stablecoin issuer indicated it may explore further involvement with Elemental’s leadership and governance. Future collaboration could include discussions around long-term capital strategy and operational partnerships, subject to regulatory approval and prevailing market conditions.

Tether deepens gold and Bitcoin commitment

Through Elemental’s royalty and streaming model, Tether gains exposure to gold production without assuming the direct risks tied to mining operations. The company views this approach as an efficient way to link real-world assets to its growing blockchain-based products.

Tether CEO Paolo Ardoino said the move reflects the company’s broader strategy to diversify its reserves with traditional assets.

Ardoino said:

“Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value. By gaining exposure to a diversified portfolio of gold royalties through Elemental, we are strengthening the backing of our ecosystem while advancing Tether Gold and future commodity-backed digital assets.”

Over the years, the stablecoin firm has steadily incorporated Bitcoin and gold into its portfolio to help hedge against macroeconomic risks and put profits to work. Tether owns more than 100,000 Bitcoin and nearly 80 tons of physical gold.

He added:

“We believe in financial systems that are backed by real assets, not just promises… tangible assets like Bitcoin and gold will underpin the most durable forms of digital value.”