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Tether Buys 31.9% Stake in Gold Royalties Company Elemental Altus (ELE)
- Tether has acquired a 31.9% stake in Elemental Altus Royalties Corp (ELE), a Canadian publicly listed gold royalties company.
- Tether invested around $89.2 million in Elemental Altus as part of its strategy to back its stablecoin with hard assets like gold.
- The investment in Elemental Altus marks a significant move for Tether into the gold royalties market from its traditional stablecoin operations.
- Tether secured 78,421,780 common shares of Elemental Altus and an option for 34,444,580 additional shares through a trade mediated by AlphaStream.
- The share price of ELE surged by 23% upon the news of Tether's acquisition, with the price reaching around $1.30 post-announcement.
- Tether's CEO, Paolo Ardoino, expressed confidence in the gold market fundamentals following the investment in Elemental Altus.
- Gold royalty companies like Elemental Altus finance mining operations and receive a royalty in return, making them low-risk investments.
- Tether aims to enhance financial product stability and transparency by diversifying into the gold royalties market and building a more resilient financial infrastructure.
- Tether's asset strategy includes over 100,000 BTC, 80 tons of gold, and stablecoin Tether Gold XAUT as part of a new financial infrastructure built on blockchain technology.
- Tether's strategic investment in gold and Bitcoin aligns with its goal to create a transparent and fair economic system for investors.
- Tether's evolving financial system, backed by tangible assets, positions the company as a major holder of Bitcoin worldwide and a significant player in the gold market.
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