Tether deepens investment in Juventus as part of broader diversification strategy

Stablecoin issuer Tether has increased its ownership stake in Italian Serie A football club Juventus to 10.12%. The firm disclosed this in an official announcement, noting that it now has 6.18% of voting rights in the club.

The decision follows an earlier purchase of 8.2% of the issued share capital of the club, which had given it more than 5% of the voting rights at the time. By increasing its stake, the firm said it is showing its commitment.

Juventus is one of the most decorated football clubs in Italy, with multiple domestic and European trophies, as well as a vast fanbase all over the world. However, the club has struggled on the pitch more recently and is currently languishing in fifth on the Serie A league table.

However, Tether plans to make the club more competitive again, noting that its additional investment is proof of its confidence in the club’s value and potential for growth. The company also plans to partner with Juventus and believes that the partnership will benefit everyone.

It said:

“Tether’s leadership in the multi-trillion-dollar digital assets space—combined with its multi-billion-dollar investments in artificial intelligence, biotechnology, social media, and global distribution networks—has the potential to bring unmatched value to the football club.”

Meanwhile, Tether CEO Paolo Ardoino added that the investment in Juventus is not a financial commitment for Tether but reflects the company’s plan for collaborative innovation.

He said:

“We believe Juventus is uniquely positioned to lead both on the field and in embracing technology that can elevate fan engagement, digital experiences, and financial resilience.”

Although there is no mention of how it paid to acquire the stake, the company said that it is willing to participate in any further equity investment that will improve the club’s financial position.

Tether continues to diversify investments

Meanwhile, Tether’s foray into football club ownership is the latest of the company’s efforts to diversify after achieving significant success with USDT stablecoin. The dominance and success of USDT have left Tether flush with cash, and it has been plowing some of it into other businesses.

Over the past year, the company has invested in various ventures, including video sharing platform Rumble and agribusiness company Adecoagro. The firm also invested in data center operator Northern Data Group and brain interface company Blackrock Neurotech.

Beyond these investments, it has also launched its own commodities trading platform, peer-to-peer chat app Keet Mobile, and unveiled its artificial intelligence initiative, Tether Data, a few months ago.

Meanwhile, the firm’s latest effort is a Bitcoin holding company launched in partnership with Cantor Fitzgerald and Softbank. The company, Twenty One Capital, will launch with 42,000 Bitcoin worth over $3.6 billion, with Tether donating $1.6 billion while its affiliate exchange Bitfinex contributes $600 million. SoftBank is adding $900 million for a minority stake.

USDT remains Tether’s core business but could be at risk

Despite the diversification efforts, USDT remains the biggest business for Tether, with the company reporting $13 billion in profits last year. USDT has continued to grow and recently reached a milestone of $146 billion in market capitalization, enough for it to have a 61% dominance, according to Defillama.

Still, USDT could face some challenges, especially as more countries continue to regulate the stablecoin sector. Crypto exchanges in Europe have already delisted the stablecoin due to the Market in Crypto Assets (MiCA) regulation. There are concerns that the same thing could happen in the US once there is a Stablecoin Act.

However, the firm has promoted itself as a tool for spreading US Dollar hegemony globally. This is true to a large extent, with USDT having over 450 million users globally, most of whom are in developing economies and emerging markets.

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