Tether Acquires 70% Stake in Adecoagro, Expanding Into Agriculture and Bioenergy

Tether, the issuer of the USDT stablecoin, has completed the acquisition of a 70% controlling interest in Adecoagro (AGRO), one of Latin America’s leading agricultural and renewable energy producers, valued at nearly $1 billion.

The partnership began in September 2024 with a $100 million investment for a 9.8% stake in Adecoagro, followed by an offer to increase it to 51% in February and culminating in the 70% stake acquisition in March.

This majority control gives Tether significant influence over Adecoagro’s operations, which span Brazil, Argentina, and Uruguay, encompassing key industries like sugar production, rice farming, dairy, and renewable energy.

Tether plans to support the scaling of Adecoagro’s operations, aligning with its mission to promote “economic freedom” through decentralized finance (DeFi) and investment in underserved regions. This acquisition is seen as part of Tether’s broader strategy to bridge traditional industries with the decentralized finance ecosystem.

In line with its efforts to tokenize real-world assets, Tether also introduced its asset tokenization platform, Hadron, last year. Hadron is designed to digitize various real-world assets, such as bonds, commodities, stocks, and loyalty points, allowing them to be traded on blockchain networks.

“Partnering with Adecoagro’s expertise in agriculture and renewable energy is another crucial step toward merging conventional industries with decentralized finance and empowering the global economy,” said Paolo Ardoino, Tether’s CEO.

Following the acquisition, Adecoagro’s board was reshuffled, with five members replaced by Tether-connected executives. Juan Sartori, a prominent Uruguayan businessman, was appointed as chairman.

This move into agriculture and bioenergy follows Tether’s recent ventures in bitcoin mining, AI, and secure communications. Adecoagro’s stock rose by 2.6% on Wednesday following the announcement.