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.

According to Paolo Ardoino (@paoloardoino), Tether Group has reinvested nearly $5 billion of its profits over the past two years into the United States economy, focusing on US-based companies such as Rumble, Blackrock Neurotech, XXI, and various Bitcoin mining ventures (source: Twitter, May 26, 2025). This substantial capital allocation, in addition to Tether's over $120 billion in reserves, highlights the growing synergy between stablecoin issuers and US corporate sectors. For crypto traders, this move signals Tether’s strategic support for Bitcoin mining infrastructure, which could enhance network security and liquidity. Increased investment in the US market by a major stablecoin operator is likely to reinforce confidence in USDT’s backing, potentially stabilizing the token’s peg and influencing trading volumes across major crypto exchanges.