Tether Delves into Traditional Assets with $600 Million Adecoagro Investment
Tether, the issuer of USDT, has taken a major step into traditional assets by investing $600 million to acquire approximately 70% of Adecoagro's shares. The South American agricultural company operates over 200,000 hectares of farmland in Argentina, Brazil, and Uruguay, producing rice, milk, and raising livestock.
Adecoagro is Tether's second-largest investment in real assets after acquiring a stake in the company back in 2024. According to Paolo Ardoino, Tether CEO, this move 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.
The low liquidity of farmland may introduce new risks as it could decrease responsiveness during market shocks. This concern comes at a time when Tether's excess reserves have decreased by 40% since June, dropping from $6.8 billion to $4.1 billion.