Core Insights - Tether continues its acquisition strategy by purchasing a 31.9% stake in Elemental Altus Royalties, a publicly listed gold royalty company in Canada, for approximately $89.4 million [2][4] - This investment is part of Tether's strategy to integrate stable assets like gold and Bitcoin into its ecosystem, aiming to enhance the transparency and stability of digital financial products [2][4] - Tether's CEO emphasizes the importance of gold as a time-tested store of value and its role in building resilient financial infrastructure for the future [4] Acquisition Details - Tether acquired 78,421,780 shares of Elemental at a price of 1.55 CAD (approximately 1.14 USD) per share, completing the transaction on Tuesday [2] - The acquisition allows Tether to gain diversified exposure to global gold production without the operational risks associated with mining [2] Impact on Tether Gold - The acquisition strengthens Tether's ecosystem and supports its gold-backed stablecoin, Tether Gold (XAUt), which has become the largest gold-backed cryptocurrency since its launch in 2020 [4][5] - Tether plans to leverage its new exposure to launch more commodity-backed digital assets in the future [4] Market Context - The price of gold has seen a significant increase, rising approximately 30% within the year, with spot gold reaching a peak of $3,500 in April before slightly retreating to $3,388 [6] - Tether's XAUt stablecoin market cap reached $854 million in April, reflecting its growth alongside rising gold prices [5][6] Recent Investment Activities - Tether's acquisition of Elemental follows a record profit of $13 billion last year and a series of strategic investments, including a $458.7 million Bitcoin purchase and a $3.9 billion transfer to Twenty One Capital [7] - The company has also invested in various sectors, including media and sports, indicating a broadening of its investment portfolio [7]