Terra Purchases $1.5 Billion Worth of BTC to Become Second-Largest Corporate Bitcoin Holder
2022.05.06 14:32
Terra Purchases $1.5 Billion Worth of BTC to Become Second-Largest Corporate Bitcoin Holder
The Luna Foundation Guard (LFG) has purchased an additional $1.5 billion of the leading cryptocurrency in its bid to accumulate Bitcoin worth $10 billion. The bitcoin purchased by LFG will be used to bolster the reserves of its popular stablecoin, known as U.S. Terra (UST).
Terra Purchases an Additional $1.5 Billion of Bitcoin
The LFG’s drive to attain $10 billion of bitcoin for its stablecoin reserves has seen it purchase an additional 37,863 bitcoins, worth approximately $1.5 billion.
The foundation’s latest bitcoin acquisition consisted of two over-the-counter deals this week. The first was a $1 billion OTC swap with crypto prime broker Genesis for $1 billion worth of UST. The second was a $500 million bitcoin purchase from Three Arrows Capital.
Terra Becomes Second-Largest Bitcoin Holder
Following its latest accumulation, the LFG now holds a total of 80,394 Bitcoins, worth approximately $3.5 billion at press time. LFG has now become the second-largest corporate holder of Bitcoin, overtaking Tesla (NASDAQ:TSLA).
According to Do Kwon, the co-founder and CEO of Terraform Labs, the LFG expects to reach its $10 billion Bitcoin reserve goal by the end of the third quarter.
On the Flipside
- The declines being experienced across the crypto market, and the increasing reserves attained for U.S. Terra (UST) have earned it the position of 10th largest crypto, with a market cap of $18.7 billion.
The top 10 cryptos ranked by market cap. Source: Coinmarketcap
Why You Should Care
According to Kwon, keeping foreign reserves in the form of a digital native currency will be a winning recipe
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