The Terra Foundation has added another 37,863 Bitcoin to its reserve, making the purchase worth $1.5 billion.
The Luna Foundation added the bitcoin to its already hefty BTC reserve. The acquisition is to pump up the reserves of its stablecoin, Terra.
Terra keeps on stacking bitcoin
The current purchase brings it much closer to the ultimate aim of its $10 billion bitcoin reserve goal. Co-founder of Terraform Labs, Do Kwon, expects the goal to be achieved by the third quarter-end.
“For the first time, you’re starting to see a pegged currency that is attempting to observe the bitcoin standard.” “It’s making a strong directional bet that keeping a lot of those foreign reserves in the form of a digital native currency is going to be a winning recipe.”
Do Kwon
The 37,863 BTC purchase was made possible through over-the-counter swapping with the Genesis Trading broker and additional purchases from Three Arrows Capital. A breakdown of the purchase reveals a $1 billion swap with Genesis and a $500 million BTC purchase from Three Arrows Capital. The announcement was made by the company on Thursday.
The current holdings of the firm now stand at $3.5 billion. According to CNBC, the company is now in the top ten bitcoin holders on the list. Terra purchased 4,117 on April 10, 2022.
Terraform Labs founder Kwon has specific ambitions in mind, including acquiring $10 billion in bitcoin and adding it to the company’s reserves. Terra specializes in stablecoin minting, thanks to its decentralized blockchain infrastructure.
The foundation will also utilize the BTC reserves to support short-term UST redemptions and a decentralized foreign reserve, according to Kwon. It’s not just LUNA, but bigger institutions like MicroStrategy are also on a bitcoin accumulation spree.