Tether, the issuer of the USDt stablecoin, is making a significant move to diversify its portfolio, setting its sights on acquiring a majority stake in South American agro-industrial giant Adecoagro. This unexpected pivot signals a new phase in Tether’s expansion beyond digital assets and into traditional industries.
Tether’s Growing Stake in Adecoagro
On February 18, Adecoagro announced that it had received an “unsolicited non-binding proposal” from Tether Investments, the venture division of Tether, to purchase a controlling interest in the company. The proposal outlines an offer to buy outstanding common Adecoagro shares at $12.41 each.
Tether is already a significant shareholder in Adecoagro, currently holding 19.4% of the company’s outstanding shares. If the acquisition proceeds, Tether will gain a commanding position in the agro-industrial sector across Argentina, Brazil, and Uruguay.
Adecoagro Weighs Its Options
Following the proposal, Adecoagro’s board of directors met on February 16 to assess the offer, consulting with legal and financial advisors to determine whether it aligns with shareholder interests.
“The board of directors will respond in due course. The company’s shareholders are not required to take any action at this time,” Adecoagro stated in its announcement.
The deal comes at a time when Adecoagro’s stock has seen a 13% decline since September 2024, currently trading at $9.80 per share, bringing its total market capitalization to approximately $1 billion. This market fluctuation could make Tether’s offer an appealing exit opportunity for existing shareholders.
Tether’s Buying Spree – A Response to JPMorgan’s FUD?
The bid for Adecoagro follows Tether’s recent investment in Juventus Football Club, announced on February 14, marking a string of unconventional acquisitions outside the crypto space. These aggressive moves came just days after JPMorgan analysts suggested that Tether might be forced to liquidate some of its Bitcoin (BTC) holdings to comply with evolving U.S. stablecoin regulations.
Tether dismissed JPMorgan’s speculation, pointing to its $20 billion in other liquid assets and $1.2 billion in quarterly profits from U.S. Treasury investments. The company’s record-breaking $13 billion in profits in 2024 has allowed it to aggressively expand into new markets without depending solely on crypto-driven revenue streams.
Why Adecoagro?
Tether’s interest in Adecoagro isn’t entirely out of left field. In September 2024, the stablecoin issuer invested $100 million to acquire a 9.8% stake in the company, using cash from its working capital. Now, with nearly 20% ownership, Tether appears to be doubling down on its belief in the agricultural sector’s potential.
This investment suggests a broader strategy of diversifying into industries with tangible assets, potentially mitigating some of the regulatory risks that come with being a crypto-only entity. It also positions Tether within the essential food production and renewable energy sectors—industries that are both resilient and politically influential.
The Bigger Picture – Crypto Giants Moving Into Traditional Markets
Tether’s Adecoagro bid reflects a growing trend among crypto firms seeking to hedge their exposure by expanding into traditional industries. As regulatory pressures mount, stablecoin issuers and crypto exchanges are looking beyond digital assets to secure long-term sustainability.
This move could signal a shift in how major crypto firms operate—evolving from pure fintech players into diversified financial conglomerates with stakes in key global industries. If Tether’s acquisition is successful, it may pave the way for other crypto companies to follow suit, further blurring the lines between blockchain-based finance and traditional economic sectors.
What Comes Next?
Adecoagro’s board will now deliberate on the offer, and its decision could have lasting implications for both the agro-industrial sector and the crypto industry. If approved, this acquisition could reshape Tether’s corporate identity, transforming it from a stablecoin issuer into a multi-industry powerhouse.
As crypto firms continue expanding their influence beyond digital assets, one question remains: Will this diversification provide a safety net against increasing regulatory scrutiny, or will it introduce new challenges that disrupt their core operations?
