Public blockchain Terra (LUNA) now owns more than $1.57 billion worth of Bitcoin (BTC) after completing multiple large BTC purchases over the weekend.
Luna Foundation Guard (LFG), the non-profit organization built to support Terra, owns nearly 39,898 Bitcoin at time of writing, according to BitInfoCharts.
[adinserter block="1"]The trove makes LFG’s wallet the 19th-richest Bitcoin address in the world.
LFG’s holdings also come close to rivaling the Bitcoin portfolio held by electric vehicle giant Tesla, which owns nearly $1.7 billion BTC at time of writing, according to Bitcoin Treasuries.
Last month, Terraform Labs CEO Do Kwon announced a plan to accumulate $10 billion worth of Bitcoin reserves effort to back Terra’s native dollar-pegged stablecoin TerraUSD (UST).
Kwon said in an interview on the Unchained Podcast that UST being backed by BTC would help investors trust the stablecoin when Terra expands to other blockchains.
“Terra’s goal is to be the largest decentralized money in crypto, period. Its goal is not to be the largest stablecoin in the Terra blockchain, so we’re sort of expanding into let’s say the Solana ecosystem, Avalanche, Ethereum, Polygon. We plan to be everywhere where there are developers and users.
Now the thing is, different from growing stablecoin demand in the Terra ecosystem itself where trust in UST is extremely high – when you go to expand into these different ecosystems, then faith in LUNA’s collateral fitness is a lot less than what it is like in the Terra ecosystem.
But if you have Bitcoin as collateral, then nobody really questions it because it is the apex.”
Bitcoin is trading at $39,511.52 at time of writing, down more than 6% in the past 24 hours.
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