Tether International has increased its stake in Metalla Royalty & Streaming (TSXV, NYSE-A: MTA) to approximately 14%, further deepening the stablecoin issuer's expansion into Canadian gold royalty companies.

The El Salvador-based investment firm purchased 149,116 shares on Monday for $1.36 million (C$1.9 million), at a price of $9.14 per share, bringing its total holding to 13.2 million shares. Metalla's portfolio includes a 1.5% royalty covering a portion of Iamgold's (TSX: IMG; NYSE: IAG) Côté mine and the entirety of the adjacent Gosselin deposit in northeastern Ontario, located roughly 175 km northwest of Sudbury and approximately 500 km north of Toronto.

"They recognize the lofty valuations of the senior royalty companies, and undervalued businesses like Metalla have their attention," Metalla CEO Brett Heath wrote in the company's June shareholder letter.

Tether's continued accumulation reflects one of the largest pools of capital in the cryptocurrency sector steadily moving into mining royalties as it broadens exposure to gold. The firm behind USDT, the world's largest stablecoin by market capitalization, has faced years of scrutiny over the composition of the reserves backing its tokens, making diversification into tangible assets a strategically significant signal for both crypto and commodity markets. Royalty stakes provide Tether with revenue exposure tied to mine output and metal prices without the burden of mine construction or operating costs — a strategy the firm first pursued with a substantial investment in Elemental Altus Royalties (TSX, Nasdaq: ELE) last year.

Stake Building

Tether has acquired 1.94 million Metalla shares since June 8, when it held 11.27 million shares representing approximately 12% of the company. The most recent purchase lifted its holding to roughly 14%, based on 93.5 million shares outstanding.

The latest early-warning disclosure was triggered because Tether's purchases since its June filing exceeded 2% of Metalla's outstanding shares. Under Canadian securities rules, investors crossing such thresholds must file public early-warning reports, providing transparency into significant ownership changes. Tether characterized the holding as an investment but indicated it could buy additional shares, sell part of its position, engage with Metalla's board and management, or propose changes to the company's capital structure, ownership, or operations.

Metalla shares declined 1.3% to C$12.60 by mid-Wednesday in Toronto, giving the company a market value of approximately C$1.2 billion ($851 million).

Metalla holds nearly 100 gold, silver, and copper royalties and streams. Its portfolio includes royalties on First Quantum Minerals' (TSX: FM) Taca Taca copper project in Argentina, Hudbay Minerals' (TSX, NYSE: HBM) Copper World project in Arizona, and G Mining Ventures' (TSX: GMIN; US-OTC: GMINF) Tocantinzinho gold mine in Brazil.

Gold Strategy

Tether made its royalty strategy explicit in June of last year when it acquired approximately 32% of Elemental Altus, tying the investment to a broader effort to increase exposure to gold and other hard assets. The move came as gold traded near record levels, reinforcing the metal's appeal as a reserve asset at a time of persistent geopolitical uncertainty and central-bank buying.

Tether reported $1.5 billion in second-quarter operating profit and $187.75 billion in assets against $183.64 billion in liabilities as of June 30, leaving a $4.11 billion cushion. The firm added 14 tonnes of physical gold during the quarter, bringing its total holdings above 146 tonnes.

Separately, the physical gold backing Tether Gold's XAU₮ tokens totalled 22 tonnes at June 30. Customer holdings rose 9.5% during the quarter even as the gold price fell 14%.