In a bold move reshaping its investment strategy, Tether, who is the powerhouse behind the world’s largest stablecoin, USDT, has expanded its ownership in Latin American agricultural giant Adecoagro to 70%.
The deal signals Tether’s growing appetite for real-world assets far beyond digital currencies, positioning it as a key player in sustainable agriculture.
Tether’s Strategic Push Into Sustainable Agriculture
Tether Investments S.A. de C.V., a branch of the Tether Group, finalised a transaction to acquire up to 49.6 million common shares of Adecoagro at $12.41 each. This aggressive tender offer aims to boost Tether’s stake from 51% to 70%, valuing the deal at over $615 million. This was followed by Adecoagro’s board greenlit the proposal after weeks of evaluation, marking a pivotal shift in the company’s ownership structure.
The agreement hinges on Tether securing at least 51% ownership on a fully diluted basis. If successful, the deal will inject fresh capital into Adecoagro’s operations, accelerating its sustainability projects across Argentina, Brazil, and Uruguay.
Tether’s Unconventional Expansion
Tether’s interest in Adecoagro isn’t sudden. In February 2025, the firm made an unsolicited bid for a 51% stake, offering the same $12.41 per share. At the time, Tether already held 19.4% of Adecoagro’s shares, purchased quietly over the preceding months. Furthermore, Adecoagro’s board enlisted financial and legal advisors to assess the proposal, paving the way for this expanded partnership.
The Nasdaq-listed Adecoagro boasts a $1.12 billion market cap, with sprawling farms and energy facilities across South America. Its 210,400 hectares of farmland produce 2.8 million tons of crops annually, while its renewable energy operations generate over 1 million MWh of electricity, a perfect match for Tether’s sustainability goals.
Why Adecoagro?
Adecoagro’s dual focus on agriculture and clean energy aligns with global demand for eco-friendly solutions. The company transforms underutilised land into productive farms, grows sugar for ethanol fuel, and operates renewable energy plants. Moreover, its circular business model minimises waste, turning crop residues into power.
For Tether, this investment isn’t just about profits. Paolo Ardoino, Tether’s CEO, emphasised their goal to “support scalable, sustainable food and energy systems.” By backing Adecoagro, Tether gains a foothold in industries critical to climate resilience and diversifies its portfolio beyond volatile crypto markets.
Beyond Agriculture
While dominating headlines with the Adecoagro deal, Tether is also pursuing a 30% stake in Italy’s media group Be Water for roughly €10 million. This follows recent investments in AI infrastructure and renewable energy, underscoring Tether’s strategy to blend tech innovation with tangible assets.
Critics, however, question whether a stablecoin issuer should venture into unrelated sectors. Supporters counter that Tether’s $100+ billion reserves empower it to drive real-world impact while hedging against crypto’s unpredictability.
What’s Next for Adecoagro and Tether?
With Tether’s deepened involvement, Adecoagro plans to expand its ethanol output, upgrade farming tech, and explore carbon-neutral initiatives. The partnership could also open doors to blockchain-based supply chain tracking, merging Tether’s tech expertise with Adecoagro’s agricultural reach.
For now, all eyes are on the tender offer’s progress. Shareholders have until late 2025 to participate, though analysts predict swift acceptance given the premium pricing. If successful, Tether will solidify its role as a bridge between digital finance and sustainable development.
A New Blueprint for Crypto Giants?
Tether’s Adecoagro gamble reflects a broader trend: crypto giants diversifying into high-impact sectors. By channelling wealth into agriculture and energy, Tether isn’t just chasing returns; it’s betting on industries that will define the 21st century. Whether this strategy pays off could set a precedent for others in the digital asset space.
As the deal unfolds, one thing is clear: Tether’s vision extends far beyond stablecoins. In bridging crypto and agriculture, it’s planting seeds for a more sustainable future and redefining what a blockchain company can be.
Written By Fazal Ul Vahab C H
