According to Paolo Ardoino, Tether invested C$121.6 million ($89.2 million) for a one-third stake in Elemental Altus to gain diversified exposure to gold, as stated in the announcement. This move aligns with Tether's dual strategy to bolster USDT reserves with tangible assets amid potential regulatory pressures, which could necessitate selling some of its 100,000 BTC holdings worth $10.7 billion, as suggested by JPMorgan. Elemental's shares surged 23% following the news, highlighting market sensitivity to such investments.

According to Tether's announcement on Tuesday, the stablecoin issuer invested C$121.6 million ($89.2 million) for a one-third stake in Elemental Altus to diversify USDT reserves into gold, enhancing asset backing as U.S. regulations loom. This move signals a strategic shift toward tangible assets, potentially impacting BTC holdings if compliance requires divestment, as suggested by JPMorgan earlier this year. Elemental shares surged 23% post-announcement, reflecting market confidence in gold's role in stabilizing crypto markets.