Tether, the company behind the world's largest stablecoin, USDT, has expanded its investment portfolio by purchasing a 9.8% stake in Adecoagro, a major player in Latin America's agricultural industry.
According to a filing with the US Securities and Exchange Commission (SEC), the company used cash from its working capital to fund the acquisition of 10,048,249 Adecoagro shares worth $100 million.
This marks Tether's first entry into the agriculture and food sector.
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The firm previously focused its investment efforts on emerging technologies such as artificial intelligence, peer-to-peer platforms, Bitcoin mining, and digital education.
Its flagship product, USDT, continues to dominate the stablecoin market, with a market capitalization exceeding $117 billion. Additionally, Tether recorded profits of $5.2 billion for the first half of 2024.
Despite its strong position, Tether faces growing competition from emerging players in the stablecoin arena. Notably, PayPal recently launched its own US dollar-pegged stablecoin, PYUSD, which has already reached a market capitalization of over $875 million.
The new investment comes as Tether navigates a stablecoin market that is becoming increasingly crowded. By branching out into agriculture, the company appears to be hedging its bets to solidify its position in both traditional and digital sectors.
