- Over the weekend, Luna Foundation added to its Bitcoin holdings, bringing it close to 43k Bitcoins.
- Luna Foundation is now ranked as the 18th largest Bitcoin holder in the world.
- The project’s founder stated that the accumulation of the asset will “open a new monetary era of the Bitcoin standard.”
Luna Foundation Guard (LFG) is going all-in on its Bitcoin accumulation spree as it intends to overtake MicroStrategy to be one of the largest holders of the cryptocurrency. With 42,530 bitcoins in the stash, the foundation is well on its way to achieving its lofty ambitions.
Luna Foundation Adds To Its Stash
The Luna Foundation Guard (LFG), in charge of the Terra protocol, announced the purchase of $100 million worth of Bitcoin on Wednesday and another $5M in BTC yesterday. The recent purchase gave the LFG 42,530.82 Bitcoins which is valued at just over $1.72 billion.
The purchase puts Luna Foundation Guard as the 18th largest Bitcoin holder as it eyes MicroStrategy’s top spot. MicroStrategy holds 129,218 Bitcoins with the company stacking an additional 4,167 bitcoins last week, to put some distance between it and the LFG.
Around the time of MicroStrategy’s latest purchase, LFG purchased 5,040 BTC for $230 million. The accumulation of bitcoins by the LFG was a consistent approach with the organization buying up to $125 million worth of BTC every day for three straight days in an attempt to burn through its $3 billion cash balance.
Do Kwon, Terra’s co-founder disclosed that while the project had $3 billion in funds “ready to seed” the reserves, there are plans to expand this figure to $10 billion in the coming months. The market’s response to the purchase has been lukewarm with Bitcoin and Terra faltering in view of the wider cryptocurrency market correction.
Why Is Terra Loading Up On Bitcoin
To the uninformed, Terra’s purchase of Bitcoins might come as a huge surprise but a closer look reveals the brains behind the move. The purchases are part of Kwon’s plans to back UST with Layer-1 assets with Bitcoin taking the lion’s share.
“We’re big believers of Bitcoin, so we’re just going to continue to buy whenever there’s an opportunity to,” he said. “Over time, Terra is going to be backed by a basket of the top Layer 1 assets.”
This would give UST the status of a hybrid stablecoin that will allow users to trade $1 of UST for $0.99 worth of BTC. Kwon stated that it is difficult for Bitcoin to be questioned and the crypto “is the only hard reserve asset that’s been proven out of the digital currencies”.
Aside from the Bitcoin purchasing spree, Terra has been loading up on Avalanche with a groundbreaking purchase of $200 million worth of AVAX. Kwon said the choice of AVAX was an easy one because of the stellar growth of its ecosystem and the loyalty of the community around the blockchain.