Tether, the issuer of the world’s largest stablecoin, has spent $600 million buying majority control of a South American farming conglomerate, adding land to a reserve strategy that already includes billions in gold and Bitcoin (BTC).

The move follows a clean audit from KPMG, one of the Big Four accounting firms. However, Tether’s own reserve buffer has since fallen 40%, raising questions about its scarce-asset hedges.

Farmland Joins Gold and Bitcoin in the Reserve Mix

Tether acquired roughly 70% of Adecoagro, a Nasdaq-listed agribusiness farming more than 200,000 hectares across Argentina, Brazil, and Uruguay. The deal grew to about $600 million in September 2025, and followed an initial $100 million stake bought in 2024.

Analysts have described the acquisitions as diversification, following the same logic behind Tether’s gold and Bitcoin holdings. Tether itself has called those assets a hedge against dollar debasement and inflation. It also plans to use the farmland’s renewable energy to power Bitcoin mining.

Ardoino describes Tether as “probably the largest owner, land owner in South America,” noting the agribusiness runs hundreds of thousands of sheep and cattle and produces milk and rice. He framed the holding as part of the same logic driving Tether’s gold and Bitcoin positions — a hedge against systemic instability rather than a conventional investment.

“This is when we think about the stability of the world that has to come through real tangible assets,” he said, adding that Tether has to remain “a company that survived to the worst case scenario.”

Tether’s Business Also Include US Treasuries.

Meanwhile, Tether remains one of the world’s largest holders of US Treasuries. Its exposure last stood at roughly $141 billion, disclosed in its first-quarter 2026 attestation. That leaves the company betting on scarce, hard assets. Yet it still anchors most of its balance sheet to the very currency it hedges against.

KPMG’s first full audit confirmed reserves exceeded liabilities by $6.8 billion at the end of 2025. Tether CEO Paolo Ardoino called the result a clean audit, the strongest opinion an auditor can issue. However, Tether has not published the underlying audited statements.

Tether’s own June attestation, a quarterly reserve snapshot reviewed by BDO, put that same buffer at just $4.1 billion. That is a drop of roughly 40% in six months, driven largely by unrealized losses on gold and bitcoin.

Those are the very assets meant to protect Tether’s balance sheet. Farmland adds a further complication, since land cannot be sold quickly if Tether ever needs cash fast.

Whether Tether’s scarce-asset strategy ultimately strengthens its position or adds new risk remains unclear. KPMG’s full report, still unpublished, could settle that question once it reaches the public.

Source: BeInCrypto