Tether bids $1.24B for Adecoagro, aiming for 51% stake in energy, agri sectors.
The issuer of the USDT stablecoin, Tether, is making a strategic move to increase its market reach outside cryptocurrency. Tether made a $1.24 billion acquisition proposal for Adecoagro, a South American energy and agricultural firm. The strategic purchase would enable Tether to boost its existing stake in the company from 19.4% to control ownership.
Tether presented its non-binding offer to Adecoagro’s Board of Directors on February 14, 2025. The proposal included a tender offer to purchase additional shares at $12.41 per common share. Adecoagro’s board, however, has yet to decide on the offer. Financial and legal advisors have been engaged to assess the proposal, but for now, no immediate actions are required from shareholders. The company emphasized that the announcement is only for informational purposes and that the tender offer has not yet been initiated.
In September 2024, the company invested $100 million of its working capital funds in Adecoagro to purchase a 9.8% stake. Since then, the company’s stock price has fallen approximately 13%, to $9.80 as of February 18, 2025. Adecoagro’s valuation is about $1 billion, with its assets exceeding short-term liabilities.
The company’s acquisition bid comes after a successful financial year for the company, which reported profits of $13 billion in 2024. U.S. Treasury bonds generated most of its profits amounting to a record $113 billion. The company has expanded its operations into energy and agriculture alongside a strategy of advancing into industries further than cryptocurrency.
In addition to pursuing Adecoagro, the company has made significant investments in other sectors. The firm acquired a minority stake in the Italian football club Juventus, making it the first major digital asset company to buy into a European football club. Tether has also partnered with the government of Guinea to explore blockchain adoption, with plans to implement best practices from global blockchain experts.
Tether demonstrates its mission to utilize its financial assets by breaking into new technology sectors. The company plans to connect digital assets, artificial intelligence and biotechnology systems with traditional industries encompassing energy, agriculture and sports.
