Tether Raises Metalla Royalty Holding to 14%

Tether International increased its stake in Metalla Royalty & Streaming to about 14%. The stablecoin group bought 149,116 shares on Monday for $1.36 million (C$1.9 million), or $9.14 each. This purchase raised its total holding to 13.2 million shares.

This move deepens Tether’s focus on Canadian gold royalty companies. Royalty stakes give Tether exposure to mine revenue and higher metal prices without the costs of mine construction. Metalla holds nearly 100 gold, silver, and copper royalties and streams.

Tether began this strategy last year with a large investment in Elemental Altus Royalties. Metalla CEO Brett Heath noted Tether sees value in “undervalued businesses like Metalla” compared to senior royalty companies. Tether has bought 1.94 million Metalla shares since June 8.

Metalla shares fell 1.3% to C$12.60 apiece by mid-Wednesday in Toronto. The company is now valued at about C$1.2 billion ($851 million). Tether reported $1.5 billion in second-quarter operating profit and added 14 tonnes of physical gold during the quarter, bringing its total above 146 tonnes.