Tether Investments, a subsidiary of the digital currency powerhouse Tether Group, announced on Thursday its acquisition of a significant stake in Elemental Altus Royalties Corp., a publicly traded Canadian firm specializing in gold-focused royalties.
The company revealed it had acquired 8,421,780 common shares in Elemental from La Mancha Investments, a private investment firm. This purchase gives Tether a 31.9% ownership in Elemental’s total outstanding shares, solidifying its influence in the precious metals sector.
In a parallel move, Tether also entered into an option agreement with AlphaStream Limited and its subsidiary Alpha 1 SPV Limited, granting the right—but not the obligation—to acquire an additional 34,444,580 shares. However, this option cannot be exercised before October 29, 2025, unless approved by Elemental’s board.
Should the option be executed in full, Tether’s ownership would rise to 117,226,871 shares, equating to about 47.17% of Elemental’s outstanding common stock—nearly half of the company.
Strengthening the Digital Economy With Real Assets
According to Tether, this strategic move aligns with its broader goal of incorporating stable, long-term assets like gold and Bitcoin into its digital ecosystem. The firm views both as critical hedges against inflation and as foundational elements for building a more resilient and decentralized financial infrastructure.
“Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value,” said Paolo Ardoino, CEO of Tether. “By gaining exposure to a diversified portfolio of gold royalties through Elemental, we are strengthening the backing of our ecosystem while advancing Tether Gold and future commodity-backed digital assets.”
Ardoino emphasized that the move is not merely a financial investment, but a strategic initiative aimed at developing long-term infrastructure for the digital economy.
Currently, Tether holds over 100,000 Bitcoin and nearly 80 tons of physical gold, underscoring its commitment to assets with proven resilience and value.
“We believe in financial systems that are backed by real assets, not just promises,” Ardoino added. “Our investment in Elemental complements our long-standing belief that tangible assets like Bitcoin and gold will underpin the most durable forms of digital value.”
A Boost for the Gold Royalty Sector
Elemental CEO Frederick Bell welcomed the investment, describing it as a milestone for both the company and the broader gold royalty space, which has struggled to attract investor interest despite a three-year surge in gold prices.
“Tether’s unmatched ability to support the company in its next phase of growth is exciting for all shareholders and a positive development for the gold royalty sector,” Bell said. “Tether is one of the world’s largest companies, the largest holder of U.S. Treasuries, and a growing investor in the gold space.”
Bell also extended appreciation to La Mancha and AlphaStream for facilitating the transaction and expressed optimism about potential future collaborations.
Conclusion
Tether’s bold move into the gold royalty space marks another step in its mission to bridge the gap between digital assets and traditional stores of value. As the cryptocurrency sector continues to mature, the integration of asset-backed investments like this one could redefine the way stability and resilience are built into decentralized finance.
