Terra’s commitment to filling up its coffers with Bitcoin has been solidified once more with another $1.5 billion purchase. It is the result of a promise that Terra had made to purchase more than $10 million worth of Bitcoin to be used as a reserve currency for its stablecoin, UST. More importantly, though is how this boosts the foundation’s standing when it comes to corporations holding the digital asset.
Terra now holds more bitcoin than Tesla
There were other companies that have taken the leap to buy bitcoins before Terra. When you think of these, MicroStrategy and Galaxy Digital are the first to come to your mind. Although MicroStrategy was the leader in BTC holdings with its largest company, Tesla held second. This was, at least until now.
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Terra, with the latest buy, has become the second-largest corporate Bitcoin holder. This beats Tesla. It was an OTC purchase made in partnership with Genesis, a cryptocurrency trading and venture capital company.
Luna Foundation Guard, which started accumulating BTC this year earlier in the year, has increased its buying. This trend is among the most prolific of all corporate bitcoin holders. The foundation’s initial purchase was in February. Now, less than three months after its first purchase, it holds 80.393 total bitcoin. These BTC have a total value of $2.9billion at the time it was purchased. The current holdings are almost twice that of Tesla, currently at 48,000 BTC.
Continue to Reaffirm the Promise
Do Kwon was the founder of Terra. He announced that Terra would buy $10 billion in BTC to fund its treasury. Terra was quick to begin buying coins. Participants in the space speculated that it might take some time before the coins were purchased. In three months, it had added BTC gradually to its treasury. It has since purchased nearly a quarter ($10 billion) of that BTC.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Terra made another move and added another cryptocurrency to the treasury. Avalanche, (AVAX), was the best choice this time. The Avalanche Foundation had been involved in the trade, which saw it purchase AVAX worth $200 million.
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Luna Foundation Guard reserve has now reached $3.23 trillion. With a total 80,393 BTC worth $2.93 Billion, Bitcoin accounts for 90.7%. LUNA is the second largest with $126.63 Million making up 4.2%. AVAX makes up 3.5%, USDT at 0.8% and USDC make up 0.7%.
Featured Image from Portal do Bitcoin. Chart from TradingView.com