The enemy of my enemy is my friend.
That seems to be the logic for Tether, one of the world’s largest crypto related investment firms.
Tether just bought $87 million worth of a specialized gold stock. It comes out to 31% of the company’s outstanding shares.
This move could signal a broader merging of crypto and gold in a way that benefits both assets. At the very least, it’s a sign that crypto investors are maturing and coming to the realization that tangible, physical gold is about as stable a store of value as you can get.
Because one of the big (and accurate) critiques of crypto-currencies is that they’re wildly volatile. Even Bitcoin, the largest and most stable crypto-currency by far, is 3x more volatile than small cap stocks on average – and about 5x more volatile than gold.
It’s hard to form a thesis for Bitcoin as a real currency when it’s so much more volatile than any other asset in the market. A currency that swings wildly from highs to lows makes it an unreliable long term store of value, as well as impossible to use as a unit of account.
But if crypto-currencies can be in some way “tethered” to real gold assets… that gives them a more stable platform.
Echoing that sentiment, Paolo Ardoino, CEO of Tether says, “Just as Bitcoin provides the ultimate decentralized hedge against monetary inflation, gold continues to be a time-tested store of value. By gaining exposure to a diversified portfolio of gold royalties… we are strengthening the backing of our ecosystem while advancing Tether Gold and future commodity-backed digital assets. This is not just about investment—it’s about building financial infrastructure for the next century.”
It’s no secret that gold and crypto investors have common cause. Both realize that paper currencies are doomed to perpetually devalue over time. Both recognize the importance of owning assets that are impervious to central banker inflation. Both see dollar devaluation as the prime enemy threatening their wealth and prosperity.
But for the entire history of Bitcoin, there’s been a kind of mutual disdain between gold and crypto investors – almost like a competition. Crypto investors will claim that having a digitally secure asset that can cross borders and quickly transfer assets to anyone, anywhere at a relatively low cost means that Bitcoin is superior to gold.
Gold investors will point out that crypto doesn’t really exist, and therefore has no real intrinsic value. If the internet goes out, gold in your hand still has the benefit of being a real asset.
People assume that gold and crypto are competitors, vying for the same pile of capital, from the same kind of investors. I don’t think that’s true but I’m also really disinterested in litigating this debate, at all.
For our purposes as gold investors, it’s only good news that a major crypto investor is buying up gold companies.
The fact it’s a specialized a gold royalty firm means that Tether is serious about investing long-term in the space. As I frequently say, gold royalties are the best way to capture long term profits from the likelihood of paper currency devaluation and gold price appreciation.
These companies are some of the most capital-efficient businesses in any market. They have almost none of the liabilities of gold miners, and all of the upside. Many of them have fewer than a dozen employees… meaning any boost to the bottom line goes almost entirely to shareholders. Many have a long history of paying and raising dividends.
I could go on…
But the takeaway from this Tether purchase is that if even a tiny percentage of crypto investors turn their attention to gold royalties, it would be huge.
Already, we’ve seen gold royalties outperform stocks and even gold itself… Any new interest is extremely bullish for this sector, which I believe is still incredibly undervalued.
It’s a great time to be in gold… and it seems like it could get even better.
Best,
Garrett Goggin, CFA, CMT
Lead Analyst, Golden Portfolio
P.S. Full disclosure: The company tether just bought is a current holding in my Golden Portfolio service, which is 100% focused on gold royalty firms.
Shares are up 42% so far in 2025, and are still selling far below my fair value target price. But it’s just one small part of my GP portfolio.
If you’re interested in finding out about the rest of my royalty research, I have some big news.
I’m preparing to launch my biggest and most ambitious gold royalty project ever – all starting next Wednesday, June 18th at 10 am.
Keep an eye on your inbox, you won’t want to miss this.