Tether Plans Major Gold Mining Investment Diversification

Tether, the issuer of the largest stablecoin USDT with a market capitalization of $168 billion, is actively expanding its investment portfolio into the gold mining sector as part of a diversification strategy. The company, which generated $5.7 billion in profits in the first half of 2025 primarily from interest on U.S. Treasuries, is exploring opportunities throughout the gold supply chain, including mining, refining, trading, and royalty agreements. CEO Paolo Ardoino has described gold as a “natural Bitcoin,” emphasizing its value as a foundational asset and complement to digital currencies. Tether holds $8.7 billion in gold bullion as reserves and recently acquired a $105 million stake in the gold royalty company Elemental Altus, with plans for further investments. This move aligns with broader trends of increased gold acquisitions by governments and institutions seeking a hedge against economic uncertainty. While some mining industry executives are surprised by Tether's ambitions and question its strategy, the company’s interest in gold may also enhance the appeal of its gold-backed crypto token XAUt, which has a market value of around $880 million.