Shares in Italy's top-flight soccer club Juventus saw a boost on Friday, following an announcement from cryptocurrency firm Tether that it had acquired a minority stake in the club. Tether did not disclose the exact size of the stake.
Juventus, based in Turin, is owned by the Agnelli family of Italy through their investment company Exor, which maintains a 64% stake in the most successful Italian club. The spokesperson clarified that Exor did not sell any shares to Tether.
Tether described its investment in Juventus on its website as "strategic," prompting a 4.7% surge in Juventus shares initially, later settling to a 1.57% increase at 2.531 euros, amid heavy trading volume.
CEO Paolo Ardoino of Tether expressed enthusiasm with a tweet: "Make Juventus Great Again."
Over the past six years, Juventus has had to raise approximately 900 million euros ($945.5 million) from shareholders in three cash calls to strengthen its financial position. The club reported a loss of nearly 200 million euros in the financial year ending June 30.
Tether is a major player in the stablecoin market, facilitating stable value cryptocurrencies pegged to traditional currencies, reducing exposure to price fluctuations across the crypto space.
Ardoino highlighted the alignment of Tether's strategic investment in Juventus with their determination to blend new technologies with the established sports industry in a company statement.
Following a period of Italian soccer dominance, Juventus faced challenges in 2020 due to an accounting scandal related to player transfers and salaries, impacting recent performances.
Currently ranking fifth in Italy's Serie A, Juventus competes in the Champions League against PSV Eindhoven.