Tether, the issuer of the market’s largest stablecoin by trading volume, USDT, is reportedly in discussions to invest in gold mining. The company aims to channel its substantial cryptocurrency profits into the metals market.
One mining executive remarked on Tether’s unconventional approach, suggesting that while the company appreciates gold, it lacks a clear strategy for navigating this established industry.
As one of the most profitable entities in the cryptocurrency space, Tether boasts a market capitalization of $168 billion. The company generated $5.7 billion in profits in the first half of this year and is also known as one of the largest holders of US Treasuries, earning interest from these investments to support its stablecoin.
Recently, Tether Investments, the arm responsible for managing the company’s profits, acquired a minority stake in the gold royalty company Elemental Altus for $105 million. This investment was complemented by an additional $100 million infusion into Elemental following its merger with rival EMX.
In addition to its investments in gold royalties, the crypto company has also engaged in discussions with Terranova Resources, a gold mining investment vehicle based in the British Virgin Islands, although no deal has materialized.
The report highlights that other firms, such as Blue Gold, are also exploring the intersection of cryptocurrency and gold. The gold mining company plans to introduce digital tokens linked to its future gold output, reflecting a belief that gold-backed tokens could gain global traction.
Featured image from DALL-E, chart from TradingView.com
