Cryptocurrency powerhouse Tether redirects digital cash gains towards gold investment
In a surprising move, Tether, the issuer of the largest stablecoin USDT with a market cap of $168.94 billion, is delving into the gold mining industry. The company, known for its digital currency, has been making waves with its recent investments in gold-related assets.
Paolo Ardoino, Tether's Chief Technology Officer, considers gold as a "natural Bitcoin" and a complementary asset. This perspective seems to be guiding Tether's strategic decisions, as they have already invested $8.7 billion in gold bars and acquired a $105 million minority stake in Elemental Altus, a Toronto-listed gold royalty firm.
Bo Hines, former Trump's crypto official, joined Tether as a strategic advisor, marking the first major investment decision after his appointment. His expertise in the field is expected to provide valuable insights as Tether navigates the world of gold mining.
Tether's interest in gold has not gone unnoticed. While some welcome the diversification, others express skepticism. One mining executive stated, "They like gold. I don't think they have a strategy." However, sources familiar with Tether's strategy reveal that the firm has held discussions with multiple gold royalty companies, including further investments in Elemental Altus.
The gold mining company targeted by Tether for a possible investment is West Wits Mining Ltd., which is developing the Qala Shallows underground gold mine in South Africa, scheduled to start production in 2026. Tether has also engaged in talks with Terranova Resources, a gold mining investment vehicle based in the British Virgin Islands, but failed to reach a deal.
Tether's foray into gold is not limited to investments. The company operates XAUt, a crypto token backed by physical gold, with a market capitalization of $880 million. Despite its size, XAUt has seen limited adoption compared to Tether's flagship stablecoin, USDT.
The move towards gold comes at a time when gold has outperformed Bitcoin in 2025, with a year-to-date gain of 37%, compared to Bitcoin's 22%. This performance has raised questions about the mining industry's ability to keep up with the gold rally, as Peter Schiff, a popular economist, stated that mining firms are lagging behind.
Tether ranks among the most profitable crypto companies. In the first half of 2025, the company generated $5.7 billion in profits, a testament to its financial strength and strategic acumen. As Tether delves deeper into the gold mining sector, it remains to be seen how this move will impact the company's growth and the broader crypto and gold markets.
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