Terra acquires $1.5 billion more Bitcoin

Terra blockchain ecosystem technology and Luna cryptocurrency stacks; Image: Shutterstock

The Luna Foundation Guard (LFG), a Singapore-based NGO affiliated with the Terra Luna ecosystem, has raised an additional $1.5 billion worth of BTC to its holdings, placing it among the top 10 Bitcoin holders in the world. 

LFG is a non-profit organisation dedicated to guiding the growth of the Terra network and its ecosystem. The foundation's most recent bitcoin acquisition was made up of two over-the-counter transactions, the first of which was a $1 billion OTC swap with crypto prime broker Genesis for $1 billion in UST, and the second was a $500 million bitcoin purchase from Three Arrows Capital.

With this latest transaction, the Luna Foundation Guard is getting closer to its objective of amassing $10 billion in bitcoin to support Terra's own stablecoin, TerraUSD (UST), which is currently the third-most valuable stablecoin. 

According to Terra co-founder Do Kwon, the switch to Bitcoin backing is in the best interests of UST's long-term price stability.

“For the first time, you’re starting to see a pegged currency that is attempting to observe the bitcoin standard,” said Kwon. “It’s making a strong directional bet that keeping a lot of those foreign reserves in the form of a digital native currency is going to be a winning recipe.”