- Tether’s $89.2M investment gives it a 31.9% stake in Elemental Altus Royalties.
- Tether aims to strengthen gold-backed assets and diversify its stablecoin reserves.
- The deal allows Tether to expand real-world asset support for its digital token ecosystem.
Tether, the company behind the largest stablecoin in the world by market capitalization, has purchased 31.9% of Elemental Altus Royalties Corp., a Canadian gold-centred royalty firm.
This investment is worth approximately $89.2 million strengthening Tether’s long-term strategy of ensuring its digital asset ecosystem is anchored to real-world, stable assets like gold and bitcoin. The investment is also in line with Tether’s increasing interest in extending its financial infrastructure through hard asset-backed products.
Tether Acquires Substantial Stake in Elemental Altus Royalties
On June 10, 2025, Tether Investments, an affiliate of Tether Group acquired 78,421,780 common shares of Elemental Altus Royalties at a price of 1.55 CAD ($1.14) per share. The transaction completed offshore in a private agreement with La Mancha Investments represents nearly one-third of Elemental’s total outstanding shares.
With this purchase, Tether’s holding in Elemental now rises to 33.7% when accounting for previously held shares. Elemental Altus Royalties CEO Frederick Bell welcomed Tether as a major shareholder, citing its capacity to support the company’s next phase of growth.
The purchase is part of Tether’s goal to incorporate stable assets such as gold and bitcoin into its holdings, not just as a hedge, but as a method to reinforce decentralized finance. With the royalty and streaming method of gold exposure Tether is exposed to gold production without directly avoiding the risks of mining. This method also enhances the transparency and stability of Tether’s digital products.
Strategic Option for Further Expansion and Future Gold-Backed Offerings
In addition to the share acquisition, Tether Investments entered an option agreement with AlphaStream Limited and Alpha 1 SPV Limited, its subsidiary company. Under this arrangement, Tether has the option to purchase up to an extra 34,444,580 Elemental shares representing approximately $38.7 million, under some terms and within specific timelines.
If exercised after October 29, 2025, and with the approval of Elemental, Tether’s ownership of the company could increase to 47.7 %. Paolo Ardoino, the CEO of Tether, stressed that the company believes in financial systems secured by tangible assets and cited gold as a “time-tested store of value.” In contrast, Bitcoin is a decentralized hedge against monetary inflation.
Furthermore, the company has a gold-backed stablecoin, Tether Gold (XAUT), which has accumulated a market cap of $854 million, reflecting the increase in the spot gold price over the last year. The new stake in Elemental strengthens the backing for XAUT and signals further commodity-backed digital asset plans.
Building a Resilient, Asset-Backed Financial Ecosystem
The recent investment in Elemental Altus Royalties is an addition to the strategy Tether has been following to acquire long-term assets and facilitate the integrity of its ecosystem. Tether Investments has also diversified its holdings beyond the sectors like artificial intelligence, remittances, and digital infrastructure, in addition to over 100,000 bitcoins and nearly 80 tons of physical gold.
The Elemental collaboration, which will operate within the Canadian securities regulations, sets Tether to collaborate on governance and long-term strategy, pending regulatory approvals.
