Tether is reportedly engaging in discussions about investing in gold-mining firms.
The move appears to reflect its strategy to deploy sizable crypto-derived earnings into more traditional, commodity-linked assets, with gold increasingly viewed internally as a digital counterpart or “natural bitcoin.”
Gold as “Natural Bitcoin”: Strategic Diversification
According to the Financial Times, the company is considering using part of its crypto earnings to acquire stakes in gold-mining firms. In June, Tether Investments paid $105 million for a minority stake in Elemental Altus, a Toronto-listed gold royalty company. On Friday, Tether increased its investment by $100 million as Elemental announced a merger with rival EMX.
The company has discussed investing in the entire gold supply chain with mining and investment groups. Tether also held talks with multiple gold royalty companies and Terranova Resources, though the latter didn’t result in a deal.
Analysts suggest this approach could allow Tether to reduce risk exposure to the highly volatile cryptocurrency market. Historically viewed as a safe-haven asset, gold may provide a stable complement to digital holdings.
Tether’s new positioning of gold as a “natural bitcoin” highlights its ideological alignment with decentralized principles. Crypto industry insiders remark that the comparison underscores similarities in scarcity, perceived value, and global accessibility between the two assets.
By investing in gold, Tether could strengthen its balance sheet while signaling confidence in traditional commodities and digital currencies. Tether has maintained a leading position in the stablecoin market, generating substantial revenues from transaction fees and treasury holdings.
Market Impact and Financial Capacity
Tether reported a $5.7 billion profit in the first half of the year, providing ample capacity for such investments. The move may mark a significant milestone in integrating cryptocurrency profits with traditional financial instruments if executed.
Observers suggest that Tether’s diversification could inspire wider adoption of commodity-backed strategies in the crypto sector. In addition, partnerships with established mining firms could strengthen market confidence in stablecoin issuers, highlighting their ability to manage risk while expanding their influence in digital and physical asset markets.
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