Simply put
- Stablecoin giant Tether emphasizes the importance of diversifying your portfolio.
- The company, based in El Salvador, has acquired a substantial stake in the Canadian Gold Royalty Company.
- Tether also owns a significant amount of Bitcoin, valued at around $10.7 billion.
Stablecoin issuer Tether has invested in a gold company as it continues to promote safe-haven assets, including Bitcoin, which is often referred to as “Digital Gold.”
The company announced on Thursday that it has purchased 78,421,780 common shares of Canada-based Elemental Altas Royalty Corporation.
Tether reported that the acquisition cost was approximately $121.5 million (more than $89 million). Currently, Elemental’s stock (ELEMF) is trading about 1% higher at $1.14 per share according to OTC Markets data.
“Our increasing investments in gold and Bitcoin demonstrate our strategic vision for a more robust and transparent financial system,” said Tether CEO Paolo Ardoino in a statement.
“Perhaps Bitcoin could serve as the ultimate decentralized safeguard against inflation,” he also remarked.
Tether described its strategy of accumulating both Bitcoin and physical gold as a “double pillar strategy.”
Tether mints USDT, which stands as the third-largest cryptocurrency by market cap and is among the most frequently traded digital assets. USDT is essentially a stablecoin pegged to the US dollar value.
The firm maintains the value of its digital tokens by holding substantial dollar reserves. Initially, USDT was used mainly by cryptocurrency traders for smooth transactions without relying on traditional banking systems. However, Tether believes that USDT is also gaining traction among individuals in emerging markets facing currency challenges, who are now looking to the US dollar for stability.
Tether holds around 100,000 BTC valued at about $10.7 billion, and it possesses nearly 80 tons of physical gold. During the Bitcoin 2025 conference last month, Ardoino suggested that including gold in one’s portfolio could be a wise decision.
The company also has stub coins backed by gold reserves, known as xaut. According to Coingecko, the market cap for this is over $833 million. In April, Tether mentioned that there was Xaut equivalent to more than 7.7 tons of gold.
