Crypto and agriculture: Tether invests USD 600 million in Argentina and acquires Adecoagro

The Tether Group, one of the global giants of the crypto ecosystem, has closed a deal to take control of Adecoagro, the Argentine agribusiness company with operations in Brazil and Uruguay.

The transaction will be completed for an amount exceeding USD 600 million and consolidates Tether's presence in strategic sectors beyond the digital financial market.

Tether expands its stake in Adecoagro

The company, which is the issuer of the USDT stablecoin, will acquire up to 49.5 million shares of Adecoagro at a price of USD 12.41 per share, which will ensure it a minimum of 51% of the capital and could increase its stake to 70%.

Before this agreement,  Tether already owned 19% of Adecoagro, making it the majority shareholder.  Now, with this purchase, it secures full control of the company, whose remaining capital is distributed among minority shareholders.

This investment is made through Tether Investments, an investment fund with a capital of USD 3 billion in 2024 to acquire companies in various sectors.  The magnitude of this crypto firm is evidenced by its profit of nearly USD 14 billion so far this year.

The Argentine agribusiness, a strategic opportunity for Tether

The crisis facing the Argentine agricultural sector, with a delayed exchange rate, falling prices, and declining profitability, has created investment opportunities for major international players. In this context, Tether detected potential in Adecoagro and aims to continue expanding its presence in the region.

According to industry sources, Tether is also in negotiations to enter Bioceres, the Argentine biotechnology company listed on Nasdaq with significant seed licenses. The market has already reacted to this possibility: after the purchase of Adecoagro was announced, Bioceres's shares soared by 13%.

Innovation and technology: the core of the Tether-Adecoagro alliance

Beyond the differences in scale and origin, both Tether and Adecoagro  share a common vision based on innovation and the use of technology as a growth driver.

Currently, Adecoagro operates with:

• 210,000 hectares planted.
• 16 industrial plants with 10,000 employees in Argentina, Brazil, and Uruguay.
• 2.8 million tons of agricultural products and food.
• A portfolio of mass brands, including  Las Tres Niñas, Molinos Ala, and Apóstoles.
• A renewable energy unit generating 1 million MWh.

"We produce food and renewable energy, which is associated with the traditional agricultural industry, but the adoption of cutting-edge technology is present in our four business segments and is a key factor in our strategy to be the most efficient producers," said Mariano Bosch, CEO and co-founder of Adecoagro.

Tether's vision on Argentina and agribusiness

Meanwhile, Paolo Ardoino, CEO of Tether, highlighted that the investment in Adecoagro  is part of the company's strategy to bet on sectors with real impact on the economy.

"Adecoagro has built an impressive track record of innovation in food and renewable energy production throughout South America, and we are proud to support its vision," stated Ardoino.

In a recent interview with Forbes Argentina, Ardoino had already pointed out that Argentina is an agricultural powerhouse with unique opportunities to invest in high-quality land and production capacity.

"Our investment strategy focuses on identifying sectors with solid essentials and untapped potential, whether in emerging technologies or more established industries with growth potential," said the CEO of Tether.

A sector hit by the crisis but with recovery prospects

Despite the interest of global investors, the Argentine agricultural sector is going through one of its worst crises in recent years due to a combination of various factors:

• Drop in international commodity prices.
• Frozen exchange rate affecting export competitiveness.
• Export taxes on agricultural products.
• Currency controls restricting access to foreign exchange for the sector.

This combination of elements has led to a sharp decline in agricultural profitability, which explains the interest of companies like Tether  in entering the business at a time of depressed valuations, with the expectation of a recovery in the medium term.

The acquisition of Adecoagro by Tether not only represents a milestone at the intersection of the crypto world and the real economy, but it could also mark the beginning of a new stage for the agribusiness sector in Argentina, with a greater push toward innovation and productive efficiency.