Tether Adds Farmland to Reserve Mix Amid Shrinking Reserve Buffer

Tether, the issuer of the world’s largest stablecoin, has expanded its reserve strategy by acquiring a majority stake in a South American farming conglomerate. The move adds farmland to a portfolio that already includes billions in gold, Bitcoin (BTC) and large holdings of US Treasuries.

Acquisition Details

Tether purchased roughly 70% of Adecoagro, a Nasdaq‑listed agribusiness that operates more than 200,000 hectares across Argentina, Brazil and Uruguay. The transaction reached about $600 million in September 2025, following an initial $100 million stake bought in 2024.

Purpose of the Land Holding

Company officials describe the farmland as a hedge against dollar debasement, inflation and systemic instability, similar to the rationale behind Tether’s gold and Bitcoin positions. The agribusiness produces livestock, milk and rice, and Tether plans to use its renewable‑energy output to power Bitcoin mining operations.

Reserve Composition and Recent Audit

Tether’s reserve buffer fell by roughly 40% over six months, according to a June 2026 attestation reviewed by BDO, leaving a $4.1 billion buffer. The decline is attributed mainly to unrealized losses on gold and Bitcoin, the very assets intended to protect the balance sheet. Despite the drop, a KPMG audit issued an unqualified (clean) opinion, stating that reserves exceeded liabilities by $6.8 billion at the end of 2025.

Other Reserve Assets

• Gold
• Bitcoin (BTC)
• US Treasuries (approximately $141 billion)
• Farmland via Adecoagro

The addition of land introduces liquidity considerations, as real estate cannot be sold quickly if cash is needed. Whether this diversification strengthens Tether’s position or adds new risk remains an open question.