"Tether ( Tether, the issuer of the world's largest stablecoin, USDTCRYPTO:USDT), has deepened its push into precious metals with a $100 million investment in Canadian gold royalty company Elemental Altus Royalties. This follows Tether's earlier acquisition of a 37.8% stake in Elemental for $105 million in June, bringing its total ownership to a controlling position."
"The timing aligns with Elemental's merger with EMX Royalty, creating a mid-tier gold-focused royalty company with 16 producing royalties. Gold's meteoric rise this year, hitting a record high near $3,580 per ounce, underscores the strategic appeal of this move. Tether's CEO, Paolo Ardoino, calls gold the "natural Bitcoin," signaling a dual-pillar strategy blending crypto and tangible assets. Could Tether's bold bet ignite interest among other stablecoin issuers to pursue royalty companies, unlocking revenue streams beyond crypto?"
"( BitcoinCRYPTO:BTC) is often hailed as "digital gold," prized for its scarcity and potential as a store of value, much like gold itself. Both assets appeal to investors seeking hedges against fiat currency devaluation and economic uncertainty. However, while gold's status as a time-tested safe haven is nearly universal, Bitcoin's role remains debated. Critics point to its volatility and lack of intrinsic value, unlike gold's physical utility and historical stability."
Tether increased its exposure to gold by investing $100 million in Elemental Altus Royalties, adding to a prior $105 million stake that produced a controlling position. The investment coincides with Elemental's merger with EMX Royalty, creating a mid-tier gold royalty company with 16 producing royalties. Gold's surge toward a record near $3,580 per ounce bolsters the strategic rationale. CEO Paolo Ardoino describes gold as the "natural Bitcoin," reflecting a strategy that pairs cryptocurrency holdings with tangible assets. The move may encourage other stablecoin issuers to seek royalty companies for diversified revenue streams beyond crypto.
Read at 24/7 Wall St.
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