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Terra on Bitcoin Buying Spree: Scoops Additional $176M Worth BTC

UTC by Bhushan Akolkar · 2 min read
Terra on Bitcoin Buying Spree: Scoops Additional $176M Worth BTC
Photo: Depositphotos

Terra has accumulated a total of 39,897.98 Bitcoin worth $1.7 billion over the last month as part of its strategy to build a $10 billion BTC reserve for its UST stablecoin.

Terraform Labs continues with its Bitcoin buying spree. On Sunday, April 10, the parent organization of Terra – Luna Foundation Guard (LFG) – announced purchasing an additional $176 million worth of BTC. This happens as the BTC price continues to remain under pressure slipping under $42,000 levels over the weekend.

Last month, the Luna Foundation Guard (LFG) announced buying Bitcoin as a reserve for its UST stablecoin. With Bitcoin as a reserve currency, it will bring greater stability for UST, says Terra. Since then it has been on a strong accumulation spree. So far, the Luna Foundation Guard (LFG) has accumulated over $1.7 billion worth of BTC.

Most of the accumulation has happened over the last month. The Luna Foundation Guard (LFG) has also pledged to buy $10 billion worth of Bitcoin as Terra founder Do Kwon aspires to be the second-largest holder of Bitcoins after Satoshi Nakamoto. With its recent purchase, Terra holds nearly 40,000 BTC in its reserve.

Terra Also Adds AVAX as Reserves

Last week in a bid to diversify its reserve holdings, Terraform Labs acquired $100 million worth of Avalanche (AVAX). Terraform Labs founder Do Kwon said the reason to choose avalanche is because of its rapid growth and wider fan base. In a word with Bloomberg last week, Kwon said:

“Avalanche is still a growing ecosystem…a lot of it is fueled by loyalty to the AVAX token and users feel a lot of affinity with an asset that aligns itself with AVAX. Whereas for the average Ethereum user, aligning yourself with Ether doesn’t really mean that much.”

As a result of this move, several applications that launch on Terra will also be available on Avalanche in the future. Furthermore, it will also allow Avalanche users to trade UST against the AVAX tokens directly on the Avalanche blockchain.

But unlike Terra’s Bitcoin reserves staying on the Terra blockchain, the AVAX reserves will stay on the Avalanche blockchain.

LUNA and BTC Price Performance

Terra’s native crypto LUNA has been one of the top-performing digital assets. Earlier this month, the LUNA price skyrocketed hitting its new all-time high of $120. Terra’s LUNA has made a place for itself among the top ten cryptocurrencies in the world. However, the LUNA price has corrected more than 20% from its ATH and is currently trading under $90.

On the other hand, Bitcoin is also losing strength after a good performance over the last month.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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