Tether wants to expand into the agriculture and renewable energy sectors with the acquisition of Adecoagro, a company that owns 210,000 hectares of agricultural land in South America.
Tether wants to acquire 51% of the shares of the agricultural company Adecoagro for $1.24 billion
According to multiple sources, the world's largest stablecoin issuer Tether has proposed to acquire 51% of the shares of Adecoagro, an agricultural company operating in the South American region.
Currently, Tether owns 19.4% of Adecoagro's shares and wants to increase this stake to a controlling level at a price of $12.41 per share, valuing the company at $1.24 billion, significantly higher than Adecoagro's current market capitalization of $987 million.
This acquisition proposal was sent to Adecoagro's Board of Directors on 14/02/2025. On 16/02, the Board of Directors held a meeting to discuss and decide to hire financial and legal advisors to evaluate this transaction. Currently, no official decision has been made.
Adecoagro is one of the leading sustainable agricultural companies in South America. According to statistics, Adecoagro is the largest producer of milk and rice in Argentina, as well as having sugarcane plantations and renewable energy in Brazil, and soybean and corn farms in Argentina and Uruguay. The company owns 210,400 hectares of agricultural land and produces more than 2.8 million tons of agricultural commodities per year, including renewable energy with a production of over 1 million MWh of electricity.
This transaction marks a major step forward for Tether's expansion into agriculture and renewable energy, leveraging the abundant financial resources from the USDT stablecoin ecosystem. If completed, this will be one of Tether's largest acquisitions, demonstrating its ambition to expand beyond the cryptocurrency sector. However, the transaction has not yet officially commenced and will need to go through an evaluation process by regulatory authorities before proceeding to the next stage.
As reported by Coin68, in 04/2024, Tether restructured its organization into 5 main divisions:
- Tether Finance: Manages the USDT stablecoin;
- Tether Power: Invests in Bitcoin mining using renewable energy;
- Tether Data: Develops communication technology ideas;
- Tether Edu: Promotes educational initiatives, notably the Blockchain Academy in Vietnam launched in partnership with Medoo at the beginning of 2025.
- Tether Evo: Pioneers innovations for the future of humanity, such as healthcare or AI.
Tether has also allocated significant funds to invest in projects and companies it deems promising, including the Bitcoin mining company Northern Data (over $1 billion), the online video sharing platform Rumble ($775 million), and the healthcare service provider Blackrock Neuro ($200 million). Additionally, CEO Paolo Ardoino has revealed that Tether Investment plans to inject $5 billion into the commodities market in 2026 to provide lending capital and generate stable returns from interest rates.
Adecoagro's AGRO stock reacted with an 8.27% increase before the market opened, reaching $10.6 per share. However, since receiving the initial $102 million investment from Tether in 09/2024, the AGRO price has declined by more than 13.9%.
The latest 6-month price movement of AGRO stock representing the Adecoagro agricultural company, captured at 08:50 PM on 18/02/2025 on Google Finance.
Compiled by Coin68
