Tether Spends $600 Million on Farmland to Back USDT

Tether, the company behind the largest stablecoin in the market, spent $600 million to buy a majority stake in a major South American farming conglomerate. The firm acquired about 70 percent of Adecoagro, a business operating across Argentina, Brazil, and Uruguay. This new purchase adds more than 200,000 hectares of land to a reserve portfolio that already holds billions of dollars in gold and Bitcoin.

Company executives explain that physical land serves as a hedge against inflation and systemic financial instability. The plan also includes using renewable energy generated on these farms to power future Bitcoin mining operations. Even with these alternative assets, Tether still holds roughly $141 billion in US Treasuries to anchor the bulk of its balance sheet.

This expansion into physical land follows a clean audit report from KPMG confirming that reserves exceeded liabilities. However, the company reserve buffer dropped by 40 percent over a six month period due to unrealized losses on its gold and Bitcoin holdings. Because farmland is an illiquid asset, market watchers will be tracking how these investments impact stability if the company ever needs quick cash.