The largest stablecoin issuer, Tether, intends to expand its influence in the agricultural sector by proposing to increase its stake in the South American-based public company Adecoagro to 51%. A recent official press release from the latter disclosed that the proposal was received on February 14 and was “unsolicited” and “non-binding.”
Tether Plans to Become Majority Shareholder
The announcement by the agricultural company reveals that Tether offered to acquire its outstanding common shares at $12.41 per share. Notably, the stablecoin company is already a 19.4% stakeholder in Adecoagro. If the proposal gets accepted, Tether will hold 51% of the South American agricultural firm.
Adecoagro’s Board of Directors met on February 16 to review the offer’s terms and implications for stakeholders in response to the proposal. The Board will engage legal and financial advisors to evaluate the proposal and determine its alignment with the company’s and its shareholders’ best interests. The firm advised related parties not to act until an official statement.
At press time, Adecoagro’s stock was trading at $9.79 per share, reflecting a slight decrease of 0.15% from the previous close. The proposed acquisition price of $12.41 per share shows Tether is willing to pay a premium over the current market price. The move could potentially influence shareholder sentiment as they await further developments.
Tether Diversifies Portfolio
Recently, Tether has been expanding its investments beyond the crypto sector. One of its most notable investments was in Blackrock Neurotech, a U.S.-based company specializing in brain-computer interface (BCI) technology. In April 2024, the stablecoin issuer invested $200 million in the firm to restore movement and communication for people with neurological disorders.
Another major move came with the firm’s stake in Rumble, a video-sharing platform. The company claims the involvement aligns with its broader push into infrastructure and media-related investments.
Most recently, this month, Tether acquired a minority stake in Juventus Football Club, one of Italy’s most famous soccer teams. While the exact size of the stake was undisclosed, the company described the investment as “strategic,” hinting at possible brand integrations and collaborations in the sports industry.
Meanwhile, it’s not surprising that Tether is investing in other sectors, given the increasing crypto-related regulatory scrutiny on the firm. By expanding into other businesses, Tether may be aiming to mitigate risks from crypto regulations while gaining a presence in other industries.
