Tether Secures 70% Stake in Agricultural Land with $600 Million Investment

Tether (USDT), the issuer of the cryptocurrency, has invested $600 million to acquire approximately 70% of the shares in the South American agricultural company Adecoagro. This move is part of a strategy to increase the proportion of real assets in response to the decline in the value of the dollar and instability in the financial markets. Adecoagro operates over 200,000 hectares of farmland in Argentina, Brazil, and Uruguay, producing rice, milk, and raising livestock. Tether first acquired shares in Adecoagro in 2024 and secured management control in September of last year. Tether CEO Paolo Ardoino explained that the investment in farmland is part of a strategy to secure tangible and substantial assets. Tether plans to utilize the renewable energy generated from its agricultural operations for Bitcoin mining. However, there are concerns that expanding into real assets could introduce new risks. According to KPMG's audit results, Tether's reserve assets were $6.8 billion more than its liabilities at the end of last year, but by June of this year, the excess reserves had decreased to $4.1 billion, a reduction of about 40%. The low liquidity of farmland could act as a variable that decreases responsiveness during market shocks.

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