WEB3
by BSCN
September 9, 2024
Founded in 2002, Adecoagro is a major player in the agricultural sector, processing 550,000 liters of milk daily and managing large-scale sugarcane and ethanol production.
Tether, the issuer of the popular USDT stablecoin, invests $100 million in Adecoagro, a prominent Latin American agricultural company, acquiring a 9.8% stake.
Adecoagro, a key player in Latin America’s agricultural landscape, operates extensively in Argentina, Brazil, and Uruguay. A leading milk producer in Argentina, the company manages over 193,000 hectares of sugarcane in Brazil, producing refined sugar and ethanol.
Founded in 2002, Adecoagro now processes 550,000 liters of milk daily at its Buenos Aires plant and expanded into sugar, ethanol, and energy sectors in Brazil starting in 2005.
This investment in Adecoagro is part of Tether’s broader strategy to explore opportunities beyond cryptocurrency. Historically, Tether has invested in various sectors, including green energy, Bitcoin mining, artificial intelligence, and education.
By venturing into agriculture, Tether aims to mitigate risks associated with its core business of stablecoin issuance and enhance its financial stability through diversified investments.
In its filing, Tether disclosed that the $100 million investment was funded from its own working capital. The acquisition gives Tether ownership of 10,048,249 shares of Adecoagro, representing nearly 10% of the company’s outstanding common shares.
Alongside this agricultural investment, Tether is also planning to launch a new stablecoin pegged to the United Arab Emirates dirham (AED). This new stablecoin will be developed in partnership with Phoenix Group and Green Acorn Investments and will be backed by reserves from the UAE.
Tether’s USDT remains the largest stablecoin by market capitalization, valued at over $118 billion according to CoinMarketCap.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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