Luna foundation has reportedly acquired additional $1.5 billion worth of Bitcoin to move slightly ahead of Tesla as the second largest corporate holder of the flagship crypto asset valued at a little above $3 billion.
Luna foundation Guard is a non-profit organization saddled with developing the Terra ecosystem closed a $1.5 billion over the counter purchase of 37,863 bitcoin evidently surpassing Tesla as the second largest corporate holder of BTC according to a press release.
Preceding this purchase, Luna foundation Guard held 42,530 Bitcoin currently valued at $1.6 billion in its wallet, while Tesla currently holds 43,200 BTC, currently valued at $1.7 billion.
The purchase of 37,863 BTC drifts Luna foundation guard (LFG) almost one-third of the way through its initial arrangement to acquire a $10 billion worth of BTC to strengthen the UST Forex Reserve backing the Terra ecosystem stablecoin.
What they are saying..
According the LFG Governing Council member, Co-Founder and CEO of Terraform Labs, Do Kwon..
“The LFG’s mission to support the stability and adoption of the UST stablecoin continues with the latest deal acquiring BTC from Genesis for the UST Forex Reserve .”
The initial $1 billion worth of Bitcoin acquired by LFG was facilitated by a prominent crypto prime broker, Genesis, through an over the counter (OTC) swap of UST Stablecoin for BTC.
This OTC transaction was the first of its kind at the achieved magnitude.
The remaining 500 million was obtained through Three Arrows Capital (3AC) which is a leading cryptocurrency hedge fun.
According to Joshua Lim, head derivatives at Genesis,
“Terra’s remarkable growth has continuously reshaped crypto markets over the last two years.”
“Genesis is excited to be a liquidity partner to the Terra ecosystem, connecting it to a broader audience of institutional market participants.”
With the Bitcoin reserves of LFG totaling 80,394 BTC valued at over $3.1 billion, this transaction places the foundation among the top 10 bitcoin holders in the world.
What you should know
- This additional purchase by Luna foundation to complement its initial quest for more to back its stablecoin shows that Luna has fulfilled a one-third of its commitment
- This purchase will strengthen the UST Forex Reserve backing the Terra ecosystem stablecoin
- The $1 billion worth of BTC purchased by LFG was aided by a cryptocurrency prime broker, Genesis through an OTC swap of UST stablecoin for BTC
- The OTC was the first of its kind, the remaining $500 million was obtained through Three Arrows Capital
- With the bitcoin reserves of LFG totaling 80,394 BTC valued at over $3.1 billion, the purchase places the foundation among the top 10 bitcoin holders in the world.