New investor Tether open to deeper ties with Juventus

Crypto firm Tether is open to all upcoming options regarding boosting its investment in Juventus (JUVE.MI), opens new tab, the Italian Serie A football club where it has acquired a 5% stake, and has the financial strength to do so, its CEO Paolo Ardoino stated on Tuesday.

Tether, the world’s fourth-biggest cryptocurrency, on Friday disclosed it owned a minority stake in Italy’s most famous football club, which is controlled by the Agnelli family through their investment firm Exor (EXOR.AS), opens new tab and is also traded on the Milan stock exchange.

Asked whether Tether was keen on increasing its stake and potentially taking over the club, Ardoino responded, “you can acquire only what someone agrees to sell.”

“We’re happy to stay as minority investors as well as participating in various discussions,” he told Reuters during an interview.

Ardoino, an Italian citizen and Juventus supporter said Tether informed Italian market regulator Consob it had surpassed the regulatory boundary of 5% of Juventus voting rights.

He explained that Tether has expanded its stake over the last two months through stock purchases in the public market.

“We don’t wish to be confrontational, we don’t want to be perceived as forceful, we simply aim to support (Juventus) because we recognize massive and untapped potential,” he noted.

“Our core objective is to collaborate with the (Juventus) executives and investors.”

With a market valuation currently near one billion euros ($1.04 billion), a 5% interest in Turin-based Juventus is estimated at approximately 50 million euros. Tether, which does not publish audited financial reports, announced in January its 2024 net profits surpassed $13 billion.

Ardoino indicated that given those profits, “we have secured many opportunities.”

Exor retains a 64% stake in Juventus. It has repeatedly denied any intentions to sell the club.

Ardoino expressed willingness to meet with Juventus investors to discuss potential expansion of engagement with the club. Collaboration might involve utilizing the company’s payment platform and 400 million-user global reach, particularly in emerging markets, to assist Juventus in strengthening its brand.

“Football clubs must adopt a more progressive stance on leveraging these modern technologies … to engage and connect with their fan base in a fresh manner,” he remarked.

Tether has solidified itself as a key player in the expanding sector of stablecoins, designed to hold a fixed price by being pegged to traditional currencies and providing users a means to transfer funds between cryptocurrencies without facing volatility.

Juventus, under Agnelli family control for a century, has raised close to 900 million euros in fresh capital from its shareholders over the last six years.

It recorded a loss of almost 200 million euros in the financial year ending on June 30, 2024.

There are over $140 billion worth of Tether tokens circulating, serving as a proxy for the U.S. dollar, Tether states on its website. Tether asserts these tokens are fully backed by Tether’s reserves.

Regulatory bodies have persistent concerns that growing stablecoin reserves could expose the broader financial sector to larger risks, as they function as a bridge between the crypto industry and conventional financial markets.

U.S. regulators have also cautioned banks that stablecoin reserves might experience rapid withdrawals, such as if holders suddenly rushed to swap these tokens back into fiat currency.