(Kitco news) - The ongoing evolution of the cryptocurrency market continues to draw comparisons with gold and other precious metals, as both sectors have emerged as important alternative monetary assets. Tether Investments, a subsidiary of the Tether Group, is making that connection significantly more tangible.
On Thursday, Tether Investments announced the acquisition of a substantial stake in Elemental Altus Royalties Corp. (“Elemental”), a publicly listed Canadian gold-focused royalty company.
The digital currency firm stated that it purchased 8,421,780 common shares of Elemental from the private investment firm La Mancha Investments. This position represents approximately 31.9% of Elemental’s issued and outstanding shares.
At the same time, Tether Investments also signed an option agreement with AlphaStream Limited and its wholly owned subsidiary, Alpha 1 SPV Limited, granting the option—but not the obligation—to purchase a total of 34,444,580 Elemental common shares.
The option cannot be exercised before October 29, 2025, unless Elemental grants its approval. Upon exercise of the option agreement, Tether would hold 117,226,871 common shares of Elemental, representing roughly 47.17% of the outstanding common shares.
Tether stated that the investment marks a significant step in its broader strategy to integrate long-term, stable assets such as gold and Bitcoin into its ecosystem—both as a financial hedge and as part of its commitment to building a robust, decentralized, and resilient infrastructure for the digital economy.
“Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value,” said Tether CEO Paolo Ardoino. “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. This is not just about investment—it’s about building financial infrastructure for the next century.”
Tether currently holds more than 100,000 Bitcoin and nearly 80 tons of physical gold.
“We believe in financial systems that are backed by real assets, not just promises,” said Ardoino. “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.”
Frederick Bell, CEO of Elemental, said Tether’s investment in the royalty company represents a new opportunity in the precious metals space. The sector has struggled in recent years to attract investor attention, even as gold prices have experienced an unprecedented rally over the past three years.
“Their unmatched ability to support the company in its next phase of growth is exciting for all shareholders and is 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. We also express our gratitude to La Mancha and AlphaStream for their support to date and for enabling this transaction. We hope to continue finding opportunities to work with them in the future.”
