Tensions are escalating between Tether and Gold Royalty Corp (NYSE: GROY) after the gold-focused firm adopted a shareholder rights plan, widely known as a “poison pill,” to prevent Tether from increasing its ownership stake beyond 15%. The move comes just days after Tether lifted its stake in the company above the 10% threshold.
Key Takeaways
- •Gold Royalty Corp enacted a shareholder rights plan to counter potential control by Tether.
- •The plan triggers massive share dilution (around 50%) if any investor’s stake exceeds 15%.
- •The defense measure follows Tether’s rapid accumulation of positions in gold-royalty stocks.
Tether’s Buying Spree Meets Resistance
According to filings and commentary from matthew sigel, Tether, the issuer of the world’s largest stablecoin, USDT, has been quietly accumulating shares in multiple gold-royalty firms, including Gold Royalty Corp, as part of its push into real-world asset investments.
Tether’s holding in Gold Royalty recently crossed 10%, prompting speculation about whether the company planned to extend its influence or pursue a strategic acquisition. However, Gold Royalty’s board swiftly responded by activating a defensive mechanism designed to deter hostile takeovers or concentrated ownership that could threaten shareholder independence.
How the “Poison Pill” Works
Gold Royalty’s newly adopted shareholder rights plan grants existing shareholders the right to purchase additional stock at a steep discount if any entity acquires 15% or more of the company’s outstanding shares.
This move effectively dilutes the ownership of the acquiring party, in this case, potentially Tether by roughly 50%, making further stake-building prohibitively expensive. The plan goes into effect on November 17, 2025, and applies automatically to all new shares issued after that date.
The company emphasized that the measure was not in response to any formal takeover bid, but rather a preemptive action to “ensure that all shareholders are treated equally and fairly in the event of any unsolicited acquisition attempt.”
A New Chapter in Tether’s Investment Strategy
Tether has been increasingly diversifying its reserves beyond U.S. Treasuries and cash equivalents, venturing into Bitcoin, gold, and now mining-related equities. Its recent spree of gold-royalty acquisitions aligns with a broader strategy to hedge against financial system volatility while expanding into tangible assets.
However, Gold Royalty’s decision highlights growing corporate pushback against Tether’s rapid expansion into publicly traded entities — a sign that traditional firms are wary of ceding influence to one of crypto’s most powerful players.
Conclusion
The standoff between Tether and Gold Royalty underscores the growing tension between digital asset giants and traditional financial firms. As Tether continues to deploy its vast reserves across alternative asset classes, its moves are beginning to draw regulatory attention and boardroom defenses, turning its investment ambitions into a new front in the crypto-traditional finance power struggle.