Terra’s commitment to fund its treasuries with Bitcoin, it was reaffirmed by another $ 1.5 billion purchase. Background: The project promises to buy more than $ 10 billion worth of BTC to serve as a reserve for its UST stable. More importantly, the foundation will increase its position with the companies that hold the digital asset.
Terra now has more BTC than Tesla
Even before Terra started buying bitcoin, there were other companies that made the leap to bitcoin. MicroStrategy, Galaxy Digital and Tesla should be mentioned in this context.
While MicroStrategy cemented its position as the company with the largest BTC holdings, Tesla maintained its second-place position. So far.
With the recent purchase, Terra is the second largest Bitcoin holder among companies. As a result, Terra defeated Tesla in the first place.
The market was made as an over-the-counter purchase in partnership with cryptocurrency broker Genesis and Three Arrows Capital, a crypto and venture capital trading firm.
Luna Foundation Guard (LFG), which began accumulating BTC earlier in the year, has accelerated its purchases. It is one of the fastest accumulating trends among Bitcoin holders.
The first purchase took place in February, and now, barely three months later, the charity foundation owns a total of 80,393 BTC. That equates to a dollar value of $ 2.9 billion at the time of final purchase. It has almost twice the ownership of Tesla. The carmaker currently has 48,000 BTC.
Terra founders bullish on BTC
When Do Kwon, the founder of Terra, announced plans to buy $ 10 billion worth of BTC for the exchequer, the question was: when will that happen?
While market participants speculated that it would be a while before they started buying, Terra did not take his time. The company gradually and BTC within its exchequer within three months bought more than a quarter of the $ 10 billion BTC.
In addition, Terra is adding another cryptocurrency to its portfolio. and Avalanche (AVAX) for a total of $ 200 million. Traded directly with the Avalanche Foundation.
Luna Foundation’s reserves have now increased to $ 3.23 billion. Bitcoin accounts for 90.7% of reserves and a total of 80,393 BTC worth $ 2.93 billion. LUNA holds the second largest share at $ 126.63 million (4.2%), AVAX at 3.5%, USDT AT at 0.8% and USDC at 0.7%.
Text credit: Newsbtc
Last Updated May 7, 2022
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