Public blockchain Terra (LUNA) is resuming its Bitcoin (BTC) shopping frenzy even as the cryptocurrency markets experience a roller coaster of price action.
Luna Foundation Guard (LFG), the non-profit organization built to support Terra, announces that it just bought nearly 38,000 Bitcoin by way of over-the-counter (OTC) swaps with Genesis Capital and Three Arrows Capital (3AC).
“The LFG has acquired an additional 37,863 Bitcoin totaling ~$1.5 billion in OTC swaps with Genesis Trading and 3AC.”
LFG goes on to provide a breakdown of each transaction, saying that 1 billion tokens of Terra’s native dollar-pegged stablecoin TerraUSD (UST) acquired $1 billion worth of BTC through Genesis, plus $500 million worth of Bitcoin using 3AC.
Nearly a month ago LFG made several large Bitcoin purchases, and now its total holdings rank in the top 10 at approximately 80,394 BTC.
Terraform Labs CEO Do Kwon announced a plan back in mid-March to accumulate $10 billion worth of Bitcoin reserves as part of an effort to back TerraUSD.
Kwon said in an interview on the Unchained Podcast that UST being backed by BTC would help investors trust the stablecoin when Terra later expands to other blockchains.
“Terra’s goal is to be the largest decentralized money in crypto, period. We plan to be everywhere where there are developers and users.
When you go to expand into these different ecosystems, then faith in LUNA’s collateral fitness is a lot less than what it is like in the Terra ecosystem.
But if you have Bitcoin as collateral, then nobody really questions it because it is the apex.”
At time of writing, Bitcoin is down 7.87% and trading for $36,563.
BTC was near the $40,000 level just a day ago before it fell considerably Thursday morning.
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Source: https://dailyhodl.com/2022/05/06/terra-luna-backer-continues-bitcoin-buying-spree-acquires-another-1500000000-in-btc/