Breaking: USDT Issuer Tether Mulls Investing Crypto Profits in Gold Mining
Highlights
- Tether in talks to invest in gold mining and refining as well as trading and royalty companies.
- Tether chief executive officer Paolo Ardoino believes gold can be a complement to Bitcoin.
- Tether Gold (XAUT) jumps as Goldman Sachs predicted gold price can hit $5,000.
The world’s largest stablecoin issuer Tether plans to invest in gold mining. The company will reportedly use its crypto profits to invest in the gold supply chain, from mining and refining to trading and royalty companies, amid sky-high prices.
Tether Branches Out to Invest in Gold Mining
Tether, with $8.7 billion of gold bars in a Zurich vault, plans to expand deeper into gold by investing in the entire gold supply chain. This includes investments in mining, refining, trading, and royalty companies, the Financial Times reported on September 5.
Tether chief executive officer Paolo Ardoino said gold is ‘natural Bitcoin.’ “I know people think that bitcoin is ‘digital gold. I prefer to think in bitcoin terms. I think gold is our source of nature,” he added.
The conservative gold mining sector welcomes the move by Tether. However, some were skeptical about the USDT-issuer investing in Gold, thinking they don’t have a strategy. However, Ardoino remains a big advocate of gold and believes that gold can be a complement to Bitcoin.
In June, Tether Investments SA invested $105 million in gold royalty company Elemental Altus for a minority stake. On September 4, Tether Investments added another $100 million into the gold company as it merges with EMX to become a gold-focused Elemental Royalty Corp.
Tether Gold (XAUT) Jumps as Gold Price Eyes $5,000
XAUT, a crypto token backed by physical gold issued by Tether, has jumped higher while the broader crypto market faces selling pressure. The market cap has quickly increased in the last 2 weeks to surpass $877 million. The price was trading at $3,559, up more than 5% in a week.
This happens as gold price hits a new all-time high above $3,600. Goldman Sachs predicted a gold rally to $5,000 as Fed autonomy is threatened and U.S. 30-year Treasury yields hit 5% recently.
Meanwhile, the correlation between gold and Bitcoin is gradually diverging, making investors choose gold over Bitcoin amid market uncertainty. Also, Matrixport predicted a higher gold price target of $4,000 amid rising volatility and uncertainty ahead of Fed rate cuts.
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