The Luna Foundation Guard has raised $1.5 billion( R24.1 bn) in bitcoin to boost its reserves of US Terra, its most popular stablecoin. Three Arrows Capital and Genesis Trading assisted the company in acquiring 37,863 BTC through over-the-counter swaps.
The total amount raised, $500 million (R8bn), was obtained through a purchase by Three Arrows Capital and a $1 billion (R8 bn) over-the-counter transaction with Genesis. As a result, LFG has risen to become one of the world’s top ten holders, with a current BTC reserve of $3.5 billion (R55.9 bn).
The LFG’s acquisition of the UST Bitcoin Fund is a significant step forward for the organization. It will enable it to continue amassing large sums of Bitcoin. The pool’s purpose is to support the TerraUSD (UST) stablecoin peg. It also aimed to broaden the adoption of UST as the industry’s largest decentralized stablecoin.
Terraform Labs’ founder, Do Kwon, believes the organization’s goal of reaching $10 billion ( R160 bn) in assets will be met by the end of the third quarter.
“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.”
Despite the lack of evidence supporting the effectiveness of the monetary policy, Kwon believes it is representative of how society is currently over-printing. He also mentioned that citizens are working to restore a more stable monetary system.
According to Joel Kruger, a crypto analyst for LMAX Group, the growing number of corporate investors can have a significant impact on bitcoin’s value. He also mentioned that this type of purchase can provide investors with long-term interest and liquidity.
Other companies, in addition to the Luna Foundation Guard, are also making high-profile Bitcoin purchases. MicroStrategy, a publicly-traded company, increased its April reserves by 4,197 BTC, bringing the total to 129,218 BTC.
MicroStrategy was the first company to invest in cryptocurrencies in 2020, believing that they would provide a better long-term investment than the US dollar. Investing in Bitcoin, according to the company, would allow them to hedge against inflation and earn a higher return.
In a regulatory filing, Tesla, the electric vehicle manufacturer, also disclosed that it had invested approximately $1.4 billion(R 22.5bn) in Bitcoin. The company’s 42,902 Bitcoin units are now worth more than $2 billion (R 32.1bn). Galaxy Digital Holdings, a merchant bank specializing in the cryptocurrency industry, owns over 16,400 Bitcoin units.
Terra (LUNA) has lost more than 30% of its value in the last four weeks. Despite its strong performance, it is still struggling to keep its current level of support at $85(R1 363). After switching from the BUSD to the US dollar on April 18, the Terra stablecoin became the world’s third-largest stablecoin.
Over $250 (R4bn) million in institutional investor funds entered the Terra DeFi ecosystem on April 26th, according to Fireblocks. Despite the positive news flow, investors were hesitant to invest in the stablecoin.
Over the last month, the number of Terra’s decentralized applications has increased by more than 40%. The total value locked on the network reached an all-time high of 254 million units.
Terra’s Dapp received $21.2 billion (R 340bn)in deposits in 2022, a 77% increase over the previous year. The TVL of Binance Chain’s Dapp, which is a scaling solution, is currently $9.8 billion(R 157 bn), representing a 9% increase over the previous year.