Published: 11.04.2022
Article reading time:
2 minutes.
The non-profit organization Luna Foundation, as part of its program to create a reserve to support its own algorithmic stablecoin, has acquired 4,000 bitcoins.
Luna Foundation Guard (LFG) has once again invested in bitcoin. This time, the company purchased 4,000 BTC for more than $176 million at an average price of around $42,600 per coin. Thus reserves the Luna Foundation
reached 40,000 BTC is about $1.675 billion.
Terraform Labs, the company behind the Terra project, began buying bitcoins back in March as part of increasing reserves for its algorithmic stablecoin UST. At the end of last month, the company purchased $139 million worth of bitcoins, increasing the amount of the reserve to $1.45 billion.
Terraform Labs co-founder and LFG director Do Kwon said that the company intends to buy $10 billion worth of bitcoin. However, he later clarified that the firm will continue to invest in BTC even after $10 billion in reserves are created.
Last week, 231,400,000 USDT was transferred from the LFG wallet to the Binance cryptocurrency exchange address, after which 5,040 BTC were transferred to the Luna Foundation wallet. Terraform Labs is not only acquiring bitcoin – it recently bought $200 million worth of AVAX coins to strengthen its own stablecoin.
The provisioning for the UST stablecoin began after LFG announced the successful completion of the $1 billion private sale of LUNA. The company then stated that the funds will be used as a reserve for the UST stablecoin. Venture capital firms such as Jump Crypto, Three Arrows Capital, GSR, Tribe Capital participated in the sale of LUNA.
MicroStrategy is also actively buying bitcoins – after the latest investment, its balance grew to a total of 129,218 BTC, which is almost $4 billion.
Source: Bits
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