The Luna Foundation Guard (LFG) has made another groundbreaking purchase of Bitcoin (BTC) to bolster its reserve for its native stablecoin dubbed Terra USD (UST).
According to a CNBC report today, the non-profit organization that oversees the Terra blockchain, purchased a whopping $1.5 billion, which draws the company closer to its goal of amassing $10 billion worth of BTC as reserve for the stablecoin.
With the recent accumulation, the LFG reserve now holds $3.5 billion worth of BTC, with the non-profit organization still left with $6.5 billion Bitcoin to purchase.
While it appears that the LFG still has a long way to go in its Bitcoin accumulation spree, Do Kwon, the CEO and co-founder of Terra Labs stated that he is optimistic that the company will reach the $10 billion BTC goal by the end of the third quarter of this year.
“For the first time, you’re starting to see a pegged currency that is attempting to observe the bitcoin standard. It is 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,” Kwon said.
Breakdown of the Bitcoin Purchase
The $1.5 billion worth of Bitcoin was purchased in two separate transactions earlier this week. Per the CNBC report, the Luna Foundation Guard closed a $1 billion over-the-counter BTC swap with crypto prime broker Genesis in exchange for an equivalent sum in UST.
The report also added that the firm bought an additional $500 million worth of BTC from Three Arrows Capital within the week.
Meanwhile, LFG’s acquisition of BTC as a reserve for the UST stablecoin has been rewarded heavily, as the stablecoin is currently in the list of top 10 cryptocurrencies by market capitalization. The stablecoin is listed across top exchanges, with more trading platforms indicating interest in supporting the coin.
BTC Down Over 5% In 24 Hours
The announcement comes when the world’s largest cryptocurrency by market capitalization has shredded a significant percentage of its value.
Bitcoin, which was trading above $39,500 for most of the day, is down 5.3% in the last 24 hours. The top asset class is changing hands at $36,900 across major exchanges at the time of writing.
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