One of the world's most profitable cryptocurrency companies is planning a "return" to the oldest industry—gold mining! And they're calling gold "natural Bitcoin"...

Tether, the world's largest stablecoin company, has recently held negotiations with mining and investment groups, planning to invest in gold mining operations by channeling its massive cryptocurrency profits into the gold market.

According to four sources familiar with the matter, Tether's discussions have covered various segments of the gold supply chain, including mining, refining, trading, and royalty companies.

Gold, which has served as a physical store of value for millennia, stands in stark contrast to Bitcoin, a digital asset that only emerged in 2009. However, some industry executives see similarities between the two.

Tether CEO Paolo Ardoino has compared gold to "natural Bitcoin." In a speech in May, he stated: "People often say Bitcoin is 'digital gold,' but I prefer to think from Bitcoin's perspective—gold is nature's gift."

However, Tether's interest has sparked surprise and skepticism in the conservative gold mining industry. One mining executive bluntly stated: "They like gold, but I don't think they have a clear strategy." Another commodities industry executive remarked: "This is the strangest company I've ever seen."

As one of the world's most profitable cryptocurrency companies, Tether operates the dollar-pegged stablecoin USDT, which has a market capitalization of $168 billion and generated $5.7 billion in profits in the first half of this year.

Tether is also one of the largest holders of U.S. Treasury bonds, earning interest from holding government bonds to support its stablecoin.

Ardoino has been a staunch supporter of gold, stating that gold is safer than any sovereign currency and can serve as a complement to Bitcoin. According to financial statements, Tether has already stockpiled $8.7 billion worth of gold bars in Zurich vaults as collateral for its stablecoin.

In June, Tether Investments, responsible for investing the company's profits, acquired a minority stake in Toronto-listed gold royalty company Elemental Altus for $105 million. Several people familiar with Tether's thinking revealed that the company has held negotiations with multiple gold royalty companies, which invest in mines in exchange for future revenue shares. Tether is considering additional royalty deals, including further investment in Elemental Altus.

Additionally, Tether has held negotiations with Terranova Resources, a gold mining investment vehicle in the British Virgin Islands, though no deal was reached.

Tether also operates XAUT, a crypto token backed by physical gold, although its market size is smaller than USDT, with a market cap of only $880 million. Furthermore, according to industry sources, Tether has established a significant position in commodities trade finance, providing short-term financing for raw material transportation, with its trading book growing to several billion dollars.

Other companies are also attempting to bridge the gap between digital currencies and gold. NASDAQ-listed Blue Gold, which owns a mine in Ghana (with disputed licensing rights), has CEO Andrew Cavaghan stating that the company plans to launch digital tokens for its future production. He said:

"I believe gold-backed tokens could be hugely successful globally as a form of currency because people can clearly feel their authenticity—they can be directly used for consumption or directly exchanged for physical gold."