Tether, the issuer of the worlds largest stablecoin by market capitalization, continues its buying spree with its 32% stake acquisition in Canadas public gold royalty firm Elemental Altus Royalties.Tether Investments on Thursday announced the acquisition of 78,421,780 common shares of Elemental (ELE) from La Mancha Investments, representing 31.9% of Elementals issued and outstanding shares.The transaction, completed Tuesday, was made at a price of $1.55 Canadian dollars ($1.14) per share, according to an announcement by Elemental, costing Tether approximately $89.4 million.The investment marks a milestone in Tethers strategy to integrate long-term, stable assets such as gold and Bitcoin in its ecosystem, both as a hedge and as part of its commitment to building a resilient digital economy infrastructure, the stablecoin issuer said.Exposure to gold without mining risksBy acquiring ELE shares, Tether targets diversified exposure to global gold production through a royalty and streaming model, which avoids direct operational risks of gold mining.This model aligns with Tethers preference for strategic, low-risk exposure to real-world assets that can enhance the transparency and stability of digital financial products, Tether said.Source: Paolo ArdoinoTether CEO Paolo Ardoino highlighted the companys growing investments in gold and Bitcoin, which reflect its forward-looking strategy to build a more resilient and transparent financial system.
He said:Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value.This is not just about investment its about building financial infrastructure for the next century, Ardoino said.Implications for Tether GoldApart from hedging against inflation, Tethers exposure to a diversified gold royalties portfolio through Elemental allows the stablecoin issuer to strengthen the backing of its ecosystem and advance its gold-backed stablecoin Tether Gold, or XAUt (XAUT).The announcement also hints at more commodity-backed digital assets planned by Tether in the future using its new exposure.Top five stablecoins by market capitalization as of June 12, 2025.
Source: CoinGeckoSince launching in 2020, Tethers XAUt stablecoin has emerged as the largest gold-backed cryptocurrency on the market, reaching a $854 million market cap in April, according to CoinGecko data.Related: Tether CEO snubs IPO, says $515B valuation is a bit bearishXAUts rise came amid the meteoric rise of gold in the past year, with spot gold prices surging about 30% year-to-date and peaking at $3,500 in April.
Gold prices have seen a slight slump since, dropping to $3,388 at time of writing, according to TradingView.Tethers active buying spreeTethers stake acquisition of Elemental Altus Royalties is yet another investment by the stablecoin issuer after the company posted a record-breaking profit of $13 billion last year and officially moved beyond stablecoins in April 2024.In May, Tether bought $458.7 million worth of Bitcoin (BTC) for Twenty One Capital, a Bitcoin investment firm it backed that is awaiting the completion of a Special Purpose Acquisition Company merger with Cantor Equity Partners.
Tether subsequently moved another $3.9 billion in BTC to Twenty One Capital in early June, making it the third-largest corporate BTC holder after Strategy and MARA.Tether previously took a 30% stake in Italian media company Be Water in March, invested in the Juventus football club and backed self-custodial crypto wallet Zengo in February.Magazine: Crypto wanted to overthrow banks, now its becoming them in stablecoin fight