TL;DR
Tether is deepening its presence in the gold market with a new investment in Canada’s Elemental Altus Royalties Corp.
The USDT issuer plans to allocate around $100 million to buy additional shares of the company, which specializes in acquiring royalties and revenue streams from mining projects. According to filings from June, Tether already owned 37.8% of the firm, meaning this new deal would strengthen its role as a shareholder. The transaction still needs approval from Elemental Altus shareholders and is expected to close in the fourth quarter.
The investment comes at a time of surging demand for gold. The precious metal has climbed to a fresh record above $3,550 per ounce, fueled by expectations of U.S. interest-rate cuts and concerns over rising inflation. This backdrop has heightened attention on gold as a safe-haven asset and scarce resource, a narrative that Tether often links to Bitcoin, which it has described as “digital gold” due to its limited supply and use as a store of value.
Elemental Altus Executive Chairman Juan Sartori said Tether’s injection of capital aligns with the company’s goal of expanding its exposure to the gold sector. At the same time, the Financial Times reported that Tether has held talks with several mining and investment firms to explore additional opportunities tied to gold mining, refining, trading, and royalties.
Tether has also built a sizable stockpile of physical gold. By the end of June, it held about $8.7 billion in gold bars stored in a Swiss vault whose location remains undisclosed. In addition, the company issues XAUT, a token fully backed by physical gold, which holders can redeem directly in Switzerland. According to official data, the total supply of XAUT currently stands at around $1.3 billion
Also read: Bitcoin Maintains Strength at $112,000, Yet Experts Suggest A Presale Altcoin Could Rise 20x Even Faster
