Tether, the issuer behind the nearly $150 billion USDT Stablecoin, has confirmed a purchase of 70% stake in Adecoagro (AGRO), a Latin American farming company with a market capitalization of about $1 billion.
Tether initially invested $100 million in Adecoagro in September 2024 with a 9.8% stake, offering to increase it to 51% in February, raising it in March to control 70%.
Read more: Tether's $100 million investment in Ratum Agricultural Company may be tokenized play
This majority stake tether controls one of the region's most prominent food and bioenergy producers. Adecoagro owns sugar mills, rice farms, dairy products and renewable energy assets in Brazil, Argentina and Uruguay.
Tether said it aims to help Adecoagro grow its production volume, but it aims to coordinate the company with its mission to promote “economic freedom” through diversified finances and investments in under-markets.
The move may be part of Tether's ambition to tokenize actual assets, as it launched the asset tokenization service Hadron last year. The platform was designed to simplify the process of converting a wide range of real-world assets, including bonds, commodities, stocks, other stable coins and loyalty points into digital tokens on the blockchain rail.
Read more: Tether unveils a new platform to simplify corporate asset tokenization and national state
“By working with Adecoagro's proven expertise in agriculture and renewable energy, we are taking another tangible step towards filling the future of decentralized financial and economic empowerment in traditional industries,” said Paolo Ardoino, CEO of Tether.
Following the agreement, the Adecoagro board of directors was also changed. Five members have resigned and replaced by executives associated with Tether and their strategic goals. Juan Sartori, a Uruguayan businessman with political and agricultural interests, took over as chairman.
Over the past year, Tether has launched a venture with Bitcoin mining, AI and encrypted communications. Aggro stocks rose 2.6% on Wednesday.
Read more: Tether's $100 million investment in Ratum Agricultural Company may be tokenized play
Disclaimer: Some of this article was generated with the support of AI tools and reviewed by our editorial team to ensure accuracy and compliance with the standards. For more information, see Coindesk's complete AI policy.
