Aside from the Agnelli family — the controlling Juventus owners — cryptocurrency platform Tether is now the club’s second largest shareholder, after it increased its stake to 10.7 percent.
Tether Stake in Juventus Reaches 10.7 Percent
Cryptocurrency platform Tether, which houses the third largest stablecoin by market cap at the time of writing, has increased its stake in Serie A giants Juventus.
After purchasing an initial stake of 8.2 percent in February of this year, Tether Investments — the investment arm of the crypto platform — have increased their share as they seek a seat on the board of directors.
According to Bloomberg data, the new level of investment puts the holding at an estimated value of $149 million, while their stake represents a 6.18% of Juventus’ voting rights.
The purchase of the minority stake marked the first time a major European soccer club has listed a crypto company among its most valuable shareholders.
Who Are the Current Juventus Owners?
Juventus’ controlling stake remains under Exor, the investment company of the Agnelli family, who have been at the helm of the club since 1923.
This makes them the longest uninterrupted owners of a sports franchise in the world, but the family floated around 37% of Juventus’ capital on the Milan stock exchange in 2001, in order to help boost its on and off-field endeavours.
Tether did not acquire any shares from directly from Exor, which still holds a 64 percent controlling stake in Juventus.
The club still find themselves in a compromising financial position, and sit second in Serie A clubs with the most debt.
Why Did Tether Purchase a Stake in Juventus?
Last year, Tether reported profits in excess of $13 billion, some of which has been driven by heavy investments in renewable energy, AI and telecommunications.
The foray into the world of soccer, as mentioned, is the first of its kind by a crypto company. Companies from that particular sector have infiltrated the sport through commercial sponsorship and player endorsements, particularly in Italy, but never before has a stake of this magnitude been acquired in an elite club.
Tether’s recent decision to increase their stake comes as it attempts to rebuild its presence in the the European market, having faced compliance issues with the Markets in Crypto-Assets Regulation (MiCA).
Binance delisted the Tether stable coin (USDT) earlier this year in the European Economic Area.
Tether CEO Paolo Ardoino has been vocal about the “very, very limited” communication with Juventus executives, despite sending multiple formal letters in an attempt to organize meetings.
“Our interest is in ensuring the long-term success of the club,” a Tether spokesperson said.
“We believe having a voice in decisions is part of fulfilling that responsibility.”
Ardoino added that at one stage, he had to purchase his own match ticket to attend a game last season.
Are Juventus in Debt?
The Old Lady reported losses totally $208.8 million in 2023/24, having been docked points and banned from European competition, after being found guilty of false accounting and market manipulation.
Despite several capital injections directly from controlling shareholders Exor, in order to bring stability back to their finances, Juventus are projected to report a $20 million deficit in its annual statement.
The club have also just penned what will be the most expensive kit sponsorship deal in Serie A — a $460m decade-long partnership with Adidas.
With the club operating at a financial loss and failing to win Serie A for five years, investments such as Tether’s are likely a welcomed one.
According to the fastest payout betting sites, Juve are still behind Inter Milan and Napoli in experts’ estimations next season.
