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Tether, the issuer of the world's largest stablecoin, USDT, is making headlines with its bold move to acquire a majority stake in Adecoagro, a prominent agricultural and energy production company in South America. With a $385 million bid, Tether aims to strengthen its presence in the region while diversifying its investment portfolio beyond the crypto industry. Already owning 20.2% of Adecoagro's shares, Tether's strategic investment aligns with its growth plan, targeting key sectors like financial technology, biotech, and energy.
In a public filing, Adecoagro stated that Tether proposed purchasing the company for $12.41 per share. This represents a 27% premium increase above its closing value. The crypto firm maintains possession of 20.2% of Adecoagro's shares while continually increasing its ownership since starting last year.
Tether made this investment because it follows a growth strategy targeting financial technology, artificial intelligence, biotech and energy as key sectors. Through its large profits from US Treasury holdings, the company invests in multiple business sectors.
Adecoagro operates across Argentina and Brazil, where it produces crops, rice, dairy and renewable ethanol from sugarcane. The company plays a key role in South America's agriculture sector, benefiting from increasing global demand for food and biofuels.
South America is one of USDT’s fastest-growing markets. Due to recent rises in inflation and currency instability, countries like Argentina and Brazil have seen rising adoption of stablecoins. This investment has a high likelihood of strengthening Tether’s presence in the region while supporting Adecoagro’s growth as well.
Recent acquisitions by Tether include stakes in Juventus Football Club and German tech firm Northern Data AG. In December, it also invested $775 million in the social media platform Rumble Inc.
Adecoagro’s board is reviewing Tether’s offer with legal and financial advisers before making a decision.
If this deal is successfully sealed, it is no doubt another great step forward in Tether’s growing influence outside the crypto sector.
