Mentioned:
Tether is a big believer in the future of gold. And now, they’re taking a major equity position in a publicly traded gold royalty company in Canada.
What’s happening:
- Tether has purchased a 31.9% equity stake in Elemental Altus Royalties (TSXV: ELE) for $89M CAD
By the numbers:
- Tether now has a total ownership position in Elemental Altus Royalties of 33.7%
- Tether also has the option to purchase an additional 34.4M common shares of Elemental Altus Royalty from AlphaStream, which would bring their ownership up to 47.7% if exercised
Why it matters:
- This is the first time ever that Tether has taken a large ownership position in a publicly traded gold company in North America
Going deeper:
- Elemental Altus Royalties owns multiple lucrative royalty streams on gold and copper projects that are in full scale production throughout Australia and Chile
- Tether has been making a flurry of moves in the public markets lately, including being one of the lead investors in the IPO round of digital asset lending company Antalpha Platform Holding Company (NASDAQ: ANTA) as well as being one of the founding shareholders of the newly former Bitcoin accumulation company Twenty One Capital alongside of SoftBank and Cantor Fitzgerald
The intrigue:
- Tether has also been expanding the accessibility of their gold backed stablecoin, including just recently launching a new omnichain version of Tether Gold known as XAUt0
