Tether plans to acquire a 51% stake worth $1.24B in South American energy firm Adecoagro

Tether has made a bid to acquire a controlling stake in South American energy and agricultural firm Adecoagro. The proposal, valued at $1.24 billion, would increase Tether’s ownership in Adecoagro to 51%.

In a Tuesday press release , Adecoagro stated that on Feb 14, 2025, Tether sent an unsolicited, non-binding proposal to its Board of Directors. Through a tender offer, the firm wants to buy more shares at $12.41 per Common Share, which would give Tether full control.

Tether, the USDT issuer, is already a big shareholder in Adecoagro. According to its most recent SEC report on November 14, 2024, it owns 19.4% of the company’s outstanding Common Shares. 

The stablecoin firm initially invested in Adecoagro in September 2024, purchasing a 9.8% stake for $100 million using cash from its working capital.

Adecoagro’s Board to review proposal

Adecoagro’s Board of Directors met on February 16, 2025, to discuss the deal. The company has hired financial and legal experts to assess the deal and decide whether it is in the best interests of both the owners and the business itself.

For now, the energy company’s directors have not made a decision and have assured investors that no immediate action is required. The proposed tender offer has yet to be initiated, and the company reiterated the announcement is purely for informational purposes. 

If the offer moves forward, Tether will be required to file a tender offer statement with the Securities and Exchange Commission (SEC), while Adecoagro will submit a Solicitation/Recommendation Statement.

Adecoagro operates across Argentina, Brazil, and Uruguay, managing over 210,400 hectares of farmland and producing a range of agricultural commodities alongside renewable electricity. 

Still, its strong operational presence hasn’t faired much for the company’s stock, with shares declining approximately 13% since Tether’s initial investment in September 2024. 

As of February 18, 2025, Adecoagro’s stock was trading at $9.80, and the company’s valuation now stands at about $1 billion. The agricultural firm’s assets currently surpass its short-term liabilities with a ratio of 2.4x, and it has managed to wither the early 2025 stock market fluctuations.

Tether looking to expand beyond the crypto markets

Tether’s bid to acquire a controlling stake in Adecoagro comes on the backdrop of a good financial year, where the stablecoin issuer generated $13 billion in profits in 2024. The returns were largely fueled by its extensive holdings in US Treasury bonds, which reached an all-time high of $113 billion. 

USDT, the company’s stablecoin, is still by far the largest USD-backed coin by the global crypto market cap, with over $141 billion in circulation, per Coingecko data . Although Tether is facing regulatory issues and delistings in the EU region, competitors like Circle’s USDC are yet to catch up. 

This year, the company could leverage its financial strength of Tether to diversify into industries beyond cryptocurrency, with planned investments extending into energy, agriculture, and even sports.

Beyond its bid for Adecoagro, Tether has also made inroads into European football, recently acquiring a minority stake in Juventus. The investment follows a trend of crypto-affiliated sponsorships in Italian Serie A football, though the financial firm will be the first major digital asset company to buy a stake in a European football club.

“Aligned with our strategic investment in Juve, Tether will be a pioneer in merging new technologies, such as digital assets, AI, and biotech, with the well-established sports industry to drive change globally,” Tether’s CEO, Paolo Ardoino, told reporters.

Alongside making acquisitions, the startup is looking to tap into the potential of Blockchain technology in Guinea, as reported earlier today by Cryptopolitan. Tether signed a Memorandum of Understanding (MoU) with the Republic of Guinea to explore the adoption of blockchain and peer-to-peer (P2P) technologies in the West African nation. 

As part of the partnership, Tether and the Guinean government will collaborate on knowledge-sharing initiatives and implement best practices from international blockchain experts.

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