Tether acquires a 31.9% stake in Canadian gold mining firm Elemental

Tether Investments recently acquired 31.9% of Elemental shares from La Mancha investments in a private deal. Elemental is a gold mining firm listed in Canada.

According to a recent press release, the investment arm of the stablecoin issuer acquired a substantial amount of Elemental Altus Royalties shares from La Mancha Investment. The agreement signed on June 10 revealed that the firm has acquired a total of 78.4 million shares belonging to the Canadian-based company.

The investment is meant to expand on the firm’s real-world holdings, expanding on its gold-backed digital asset XAUT (XAUT). Elemental Altus Royalties offers Tether (USDT) exposure to global gold production through a royalty and streaming model that reduces the direct operational risk that comes with mining.

“This model aligns with Tether’s preference for strategic, low-risk exposure to real-world assets,” wrote the company.

In addition, the investment firm signed an option agreement on the same day with AlphaStream Limited and its subsidiary, Alpha 1 SPV Limited. The private agreement gives Tether the ability to purchase an additional 34,444,580 shares after October 29, unless Elemental grants permission to redeem them earlier.

Both AlphaStream and Alpha 1 SPV are privately held companies incorporated under the laws of the Abu Dhabi Global Market.

Tether CEO Paolo Ardoino said the investment into Elemental signifies the firm’s ongoing commitment to backing its digital assets with reliable, tangible assets such as Bitcoin and gold.

“By gaining exposure to a diversified portfolio of gold royalties through Elemental, we are strengthening the backing of our ecosystem while advancing Tether Gold and future commodity-backed digital assets,” said Ardoino.

According to the notice, the stablecoin issuer currently holds more than 100,000 Bitcoin in its reserve, along with ownership of 80 tons of physical gold to support its XAUT token.

Most recently, the company announced plans to open source its Bitcoin Mining Operating System, allowing various companies to utilize its mining infrastructure independently. Users would not be required to rely on third-party software to mine Bitcoin through the system.