The Luna Foundation Guard (LFG), a non-profit and the team behind Terra (LUNA) announced today that it has purchased an additional 37,863 bitcoins worth $1.5 billion to bolster its UST stablecoin reserve.
LFG purchased the cryptocurrency through an over-the-counter (OTC) trade with broker Genesis Trading and Three Arrows Capital.
The firm spent $1 billion UST to get $1 billion worth of BTC from Genesis, and an additional $500 million worth of BTC from Three Arrows Capital.
In March, Terra’s founder and CEO, Do Kwon revealed that the platform will be purchasing a total of $10 billion worth of bitcoins in the future to reinforce its UST stablecoin reserve.
Since then, LFG has been accumulating more of the digital asset, and its total BTC holding is currently at $3.5 billion. The most recent purchase has placed the non-profit as one of the top 10 largest Bitcoin holders.
Unlike other stablecoins such as USDT and USDC that are backed by the U.S. dollar, UST is backed by Bitcoin and pegged to the dollar and can be de-peg during extremely volatile markets.
According to Kwon, Terra has been accumulating Bitcoin because it is “liquid” enough to handle any potential de-pegging of its stablecoin.
Meanwhile, aside from BTC, the LFG team has purchased other crypto assets to strengthen its stablecoin reserve.
Coinfomania reported last month that the foundation has purchased $100 million worth of Avalanche (AVAX). The crypto asset was also bought via an OTC trade with the Avalanche Foundation.
Following the recent news, UST is currently ranked among the top 10 largest crypto assets by market cap.
Source: https://coinfomania.com/terra-buys-1-5b-worth-btc/#utm_source=rss&%23038;utm_medium=rss&%23038;utm_campaign=terra-buys-1-5b-worth-btc