Terra’s commitment to stocking its coffers with Bitcoin has been reinforced yet again with a $1.5 billion(R 24bn) purchase. This is the result of the project’s vow to purchase more than $10 billion(R 162bn) in BTC to serve as a reserve for its stablecoin, UST. More importantly, this strengthens the foundation’s position among firms that own digital assets.
Terra now has more Bitcoin than Tesla.
Before Terra began its bitcoin buying frenzy, other corporate entities had already taken the plunge. Such as MicroStrategy, Galaxy Digital, and Tesla. While MicroStrategy maintained its lead as the firm with the most BTC holdings, Tesla remained in second place. Until now, that is.
Terra has surpassed Tesla as the second-largest corporate bitcoin holder with its most recent acquisition. The transaction was completed over-the-counter (OTC) in collaboration with cryptocurrency broker Genesis and Three Arrows Capital, a crypto trading and venture capital firm.
The Luna Foundation Guard (LFG), which began accumulating BTC early this year, has increased its purchases. It has one of the quickest growth rates of any business bitcoin holder. Its initial purchase was in February, and just three months later, the non-profit foundation already has 80,393 total BTC. All of this was worth $2.9 billion(R 47bn) at the time of its most recent purchase. It now has about double the amount of Bitcoin that Tesla does, which is now at 48,000 BTC.
The Promise Is Reiterated
When Terra’s creator, Do Kwon, declared that the foundation planned to purchase $10 billion(R 162bn) in BTC for its treasury, the question was when. While participants in the space anticipated that it would take some time before they began purchasing the coins, Terra had moved immediately to begin. It had gradually added BTC to its treasury and had already purchased moreover a quarter of the $10 billion(R 162bn) BTC in three months.
Terra had also added another cryptocurrency to its coffers in a separate move. This time, Avalanche (AVAX) is being used to accomplish so. It had purchased a total of $200 million(R 3.2bn) in AVAX in a straight deal with the Avalanche Foundation.
The reserves of the Luna Foundation Guard have now reached $3.23 billion(R 47bn). Bitcoin accounts for 90.7% of the reserves, with a total of 80,393 BTC worth $2.93 billion(R 52bn). LUNA comes in second with $126.63 million(R 2bn), accounting for 4.2%, followed by AVAX at 3.5 %, USDT at 0.8%, and USDC at 0.7%.