Cryptocurrency company Tether is considering various investment options in Juventus, the Italian Serie A soccer club, in which it has acquired a 5% stake. Tether's CEO, Paolo Ardoino, stated that the firm has the financial capacity to increase its investment further. The company, known as the world's fourth-largest cryptocurrency, recently acquired a stake in Juventus, a popular soccer club in Italy controlled by the Agnelli family through their investment company Exor and listed on the Milan stock exchange.
When questioned about a potential increase in their stake or purchasing the club, Ardoino responded, "you can buy only what someone wants to sell." He expressed willingness to maintain a minority interest in the club and engage in discussions with Juventus. Ardoino, an Italian and a Juventus fan, disclosed to Italian market regulator Consob that Tether had surpassed the 5% regulatory threshold for Juventus voting rights. Tether gradually accumulated its stake through open market share acquisitions over the past two months.
Ardoino emphasized Tether's supportive stance, stating, "We don't want to be hostile or aggressive; we seek to assist Juventus due to its vast untapped potential." He stressed the intention to collaborate with Juventus management and the club's owner.
With a current market capitalization of around one billion euros, a 5% share in Juventus translates to approximately 50 million euros for Tether. The company, which does not publish audited financial reports, declared in January that its 2024 net profits exceeded $13 billion. Ardoino highlighted the significant opportunities that this profit creates for Tether.
Exor retains a 64% stake in Juventus and currently has no intentions to divest the club. Ardoino expressed readiness to meet with Juventus owners to explore potential collaborations, leveraging Tether's payment platform and vast global user base to enhance Juventus' brand.
Ardoino underscored the necessity for soccer clubs to adopt innovative technologies for better engagement with fans. He elaborated on Tether's role as a key player in stablecoins and the advantages they offer in mitigating cryptocurrency price volatility, facilitating seamless money transfers between digital assets.
Juventus, under the control of the Agnelli family for a century, has raised approximately 900 million euros from shareholders in the past six years. The club reported a loss of nearly 200 million euros for the fiscal year ending on June 30, 2024.
Tether, with over $140 billion worth of tokens in circulation pegged to the U.S. dollar, firmly asserts that these tokens are fully backed by reserves. Regulators have expressed concerns about stablecoin reserve growth posing risks to the financial system by bridging the gap between cryptocurrencies and conventional markets. U.S. regulators have cautioned banks about potential rapid outflows from stablecoin reserves, particularly if holders seek to convert tokens back to traditional currencies.