Tether Acquires Minority Stake in Elemental Altus for $88 Million
Tether's investment arm has acquired a minority stake in Elemental Altus (ELE), a precious metals investment company. Key details include:
- Tether aims to diversify the assets backing its stablecoin USDT, valued at $155 billion.
- Acquisition involved 78,421,780 common shares from La Mancha Investments.
- Elemental's stock rose nearly 23% to 1.77 CAD ($1.30) after the announcement, closing at 1.53 CAD, a 6.25% increase.
- Tether's stake represents approximately 33.7% ownership, worth nearly $88 million.
- CEO Paolo Ardoino highlighted the investment’s alignment with Tether's focus on gold and commodity-backed assets.
- Tether's strategy includes holding over 100,000 BTC, valued at $10.7 billion.
- Regulatory changes for stablecoins are anticipated in the U.S., potentially impacting Tether's asset composition.