Tether Acquires 70% Stake in Adecoagro, Advancing Tokenization Goals
Tether has acquired a 70% stake in Adecoagro, a Latin American agricultural firm with a market cap nearing $1 billion. Key details include:
- Tether's initial investment of $100 million in September 2024 for a 9.8% stake.
- An increase to 51% was proposed in February.
- The stake was raised to 70% in March.
This acquisition grants Tether control over Adecoagro, which operates sugar mills, rice farms, and renewable energy assets across Brazil, Argentina, and Uruguay. Tether plans to enhance Adecoagro’s output while promoting its mission of economic freedom through decentralized finance and investments in underserved markets.
The move aligns with Tether's strategy to tokenize real-world assets, facilitated by the Hadron platform launched last year, aimed at converting various assets into digital tokens on blockchain infrastructure.
A reshuffle of Adecoagro's board occurred post-deal, with five members replaced by Tether-linked executives, and Juan Sartori appointed as chairman. In the previous year, Tether has also ventured into bitcoin mining, AI, and encrypted communications. Adecoagro's shares rose by 2.6% following the announcement.