Terra adds $135 million in Bitcoin purchases for a total of more than $1 billion

Do Kwon, the co-founder and chief executive officer of the company behind the Terra blockchain, confirmed that it has purchased more than $1 billion worth of Bitcoin since the end of January.

Do Kwon, the co-founder and chief executive officer of the company behind the Terra blockchain, confirmed that it has purchased more than $1 billion worth of Bitcoin since the end of January.

That includes about $135 million in four purchases on Monday. Kwon confirmed with Bloomberg News the Bitcoin address used by Singapore-based Luna Foundation Guard to purchase the cryptocurrency. Records show that the address bought a total of 27,784,96954740 Bitcoin.

Bitcoin erased its losses for the year over the weekend, trading around $47,570 during New York hours on Monday. Earlier this month, Kwon announced that its UST stablecoin would be backed by a reserve of Bitcoin that could eventually reach $10 billion. He tweeted on March 22 that he has $3 billion in funds ready to make purchases in support of the algorithm’s stablecoin.

The Bitcoin address shows that LFG first started buying on January 26. The largest purchase occurred on the same day with more than 8,588 Bitcoin.

Terra’s purchases are partly a response to criticism surrounding UST. The stablecoin is not backed by a fiat currency like centralized stablecoins like Tether. It has been able to maintain its peg to the dollar by issuing and destroying Luna tokens, Terra’s proprietary cryptocurrency. For every new UST created, $1 worth of Luna is burned on the Terra blockchain.

A Bitcoin reserve for UST will help UST’s ability to maintain its dollar peg, especially when Terra faces near-term demand for redemption from UST, Kwon said.

“The reason we are particularly interested in Bitcoin is because we believe it is the strongest sirbptial reserve asset,” Kwon said in an interview with Bloomberg earlier this month. “UST will be the first native internet currency to implement the Bitcoin standard as part of its monetary policy.”

Arun Agarwal
I am Arun Agarwal, a passionate blogger and gamer. I love to share my thoughts on games and technology through blog posts. I’m also an avid reader of books about history, philosophy, science-fiction, and other genres as well as an anime fan. I like reading books that give me new perspectives or help me think differently about the world around us.