The Luna Foundation Guard (LFG), a non-profit organization behind Terra, purchased another 4,130 Bitcoin for roughly $176 million, placing LFG’s Bitcoin reserves at over 42,000 BTC. The Foundation plans to amass $10 billion worth of Bitcoin and become the most significant crypto asset holder, second only to Satoshi Nakamoto.
LFG, responsible for building reserves backing Terra USD (UST), now shows a total reserve balance of $3.17 billion. Bitcoin makes up about three-quarters of the entire reserve. USDC, USDT, and a tiny amount of LUNA tokens make up the rest of the reserve. However, even after the Foundation’s most recent purchase, it was quiet in the crypto sector, especially when the price of Bitcoin continued to fall, reaching as low as the $39,000 range.
Soon after the $100 million Bitcoin purchase on Tuesday, LFG received another $880 million in crypto in the form of a “gift” from Terraform Labs, the developers of the Terra blockchain.
Why is Terra hoarding Bitcoin?
According to Do Kwon, the CEO of Terraform Labs, one primary reason is that Bitcoin is being used to build a reserve for UST stablecoin. In acquiring more of the asset, he expects the company to become the largest holder of Bitcoin after Satoshi Nakamoto.
Who else is holding Bitcoin
So far, the Nasdaq-listed company, MicroStrategy, has the most significant Bitcoin holdings, with about 129,000 Bitcoin on its balance sheet. MicroStrategy spent billions of dollars to acquire Bitcoin throughout last year. However, at the rate of Terra’s accumulation, LFG could soon surpass companies like MicroStrategy and other private firms like Tesla–with about 43,200 Bitcoin in its treasury.
What’s next for Bitcoin?
As crypto attracts more organizations and their customers, governments around the world are trying to put regulations in place to make it easier for crypto companies to carry out their businesses while safeguarding investor interest at the same time. Recently, Dubai adopted its first law to regulate virtual assets, which could attract some of the world’s biggest crypto companies to the region.
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