Update (5:00 pm UTC): This article has been updated to include a statement from a spokesperson at Tether.
Tether, the issuer of the USDt stablecoin, is seeking to expand its investment portfolio by acquiring a majority stake in South American firm Adecoagro.
Adecoagro, an agro-industrial company operating in Argentina, Brazil and Uruguay, received an “unsolicited non-binding proposal” from Tether’s venture division, Tether Investments, to purchase a majority stake in the firm, according to an announcement on Feb. 18.
As part of the deal, Tether would acquire outstanding common Adecoagro shares at $12.41 each.
The stablecoin issuer is already a shareholder of Adecoagro, holding about 19.4% of its outstanding shares, the announcement noted.
Tether goes on buying spree after JPMorgan’s Bitcoin FUD
Adecoagro’s board of directors met on Feb. 16 to review the proposal’s terms and conditions. The company is also consulting with legal and financial advisers to evaluate whether the offer serves the best interests of its shareholders.
“The board of directors will respond in due course. The company’s shareholders are not required to take any action at this time,” Adecoagro stated.
If approved, Tether’s potential majority stake in Adecoagro would follow its recent investment in the Italian professional football club Juventus, announced on Feb. 14.
The company’s buying spree came shortly after Tether criticized JPMorgan analysts earlier this month for suggesting that it might sell some of its Bitcoin (BTC) holdings to comply with stablecoin legislation developments in the United States.
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“Even in the most extreme scenario, JPMorgan is discounting that Tether’s Group equity is over $20 billion in other liquid assets and that it has more than $1.2 billion in quarterly profits through US Treasurys,” Tether said.
Tether invested $100 million in Adecoagro last September
Tether made its first investment in Adecoagro in September 2024, acquiring a 9.8% stake in the firm for $100 million. The stablecoin firm said it “used cash from its own working capital” for the Adecoagro investment.
Adecoagro’s shares have slightly declined since then, dropping around 13% to $9.80 on Feb. 14, according to data from TradingView. The company’s market capitalization currently stands at $1 billion.
Adecoagro (AGRO) share price chart in the past year. Source: TradingView
Tether’s intention to acquire the majority stake in Adecoagro comes on the heels of a record-breaking year for the stablecoin issuer. The firm generated $13 billion in profits in 2024 as its holdings in low-risk US Treasury bonds reached an all-time high of $113 billion.
The strategy of diversifying investments
“This reflects our broader strategy of diversifying investments beyond digital assets into tangible, long-term value sectors,” a spokesperson for Tether told Cointelegraph.
The representative pointed to high long-term returns of land as an asset class, which has historically made it a “safe haven during geopolitical uncertainty.”
“Investing in agriculture aligns with our vision of resilience and sustainability, complementing our existing holdings in Bitcoin and gold,” the spokesperson said, adding:
“Adecoagro, with its focus on essential agricultural production, represents an opportunity to support an industry fundamental to humanity’s future.”
The spokesperson emphasized that its investment is made outside of Tether’s stablecoin reserves and is part of Tether’s approach to allocating profits into strategic sectors such as fintech, artificial intelligence, biotech and energy.
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