The business that created the biggest stablecoin in the world, Tether, has taken a big step forward by investing $100 million to buy a 9.8% share in the Latin American agro-tech startup Adecoagro. With this move, Tether is diversifying its investment portfolio and making its first entry into the food and agriculture sector.
A Transition from Electronics to Farming
Tether has historically concentrated its investing strategy on the technology industry, encompassing fields like digital education, Bitcoin mining, and artificial intelligence. A strategy shift towards agriculture is indicated by the recent investment in Adecoagro, demonstrating a wider interest in industries outside of technology and digital assets.
Specifics of the Investment Agreement
In a recent filing with the U.S. Securities and Exchange Commission (SEC), Tether disclosed that it bought 10,048,249 shares in Adecoagro using its own money. With this transaction, Tether now owns about 10% of the business, demonstrating their significant investment in this new endeavour.
The Function of Adecoagro in Agriculture and Energy
Adecoagro is a prominent agro-tech company in Latin America, especially in Brazil and Argentina, having been founded in 2002. With a Buenos Aires facility that processes over 550,000 litres of milk a day, the firm is a prominent player in the dairy market. Adecoagro also produces electricity, ethanol, and sugar in Brazil, demonstrating a diverse range of activities in the agricultural industry.
Ideas for a New Stablecoin Associated with the UAE
Tether intends to launch a new stablecoin linked to the United Arab Emirates dirham (AED) in addition to its investment in Adecoagro. By working with Phoenix Group and Green Acorn Investments, this project will further broaden Tether’s offers in the digital currency market by using reserves kept in the United Arab Emirates to support the stablecoin.
Going Beyond Digital Files
Tether seems to be expanding beyond its conventional focus on digital assets and technology with its latest investment and ambitions for a new stablecoin. Tether’s expansion and diversification strategy may enter a new phase with this drive into agriculture and the launch of a new stablecoin based on the UAE currency.
