The Luna Foundation Guard (LFG) just purchased 37,863 Bitcoins, its biggest Bitcoin purchase yet.
The Bitcoins are worth $1.5 billion at the time of writing.
That nearly doubles the Guard’s previous reserves from 42,530.82 BTC up to 80,394 BTC.
The group reportedly facilitated the purchase by swapping $1 billion in UST stablecoin for Bitcoin with Genesis Trading, while completing another $500 million over-the-counter purchase with help from Three Arrows Capital.
This purchase brings Terra’s total reserves to more than $3 billion, the bulk of that in Bitcoin. It holds smaller shares of LUNA, AVAX, and USDT and USDC stablecoins.
The LFG is a foundation established to guide the development of the Terra network and its burgeoning ecosystem. Its reserve is intended to provide backing for Terra’s own stablecoin, TerraUSD (UST)—currently the third-most-valuable stablecoin on the market, trailing only USDT and USDC while slightly edging out BUSD.
Stablecoins are a form of cryptocurrency whose value is pegged to a fiat currency of relatively “stable” value—often the U.S. dollar.
TerraUSD is an algorithmic stablecoin, meaning it derives its value not from physical assets in a bank but via its relationship to Terra’s floating-value cryptocurrency, LUNA. The reserves are intended for use should that algorithmically derived peg break down.
