The Luna Foundation Guard (LFG) has made another ground-breaking Bitcoin (BTC) acquisition to increase its reserve for Terra USD, its native stablecoin (UST).
According to a CNBC story published today, the non-profit that oversees the Terra blockchain purchased $1.5 billion, bringing the firm closer to its aim of amassing $10 billion in BTC as reserve for the stablecoin.
With the recent additions, the LFG reserve currently possesses $3.5 billion in Bitcoin, leaving the non-profit organization with $6.5 billion to spend. While it looks that the LFG has a long way to go in its Bitcoin acquisition binge, Do Kwon, the CEO and co-founder of Terra Labs, believes that the business will meet its $10 billion BTC objective by the end of the third quarter of this year.
Kwon said: “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.”
Anatomy of a Bitcoin Purchase
Bitcoin worth $1.5 billion was bought in two separate transactions earlier this week. According to CNBC, the Luna Foundation Guard completed an over-the-counter BTC swap of $1 billion with crypto primary broker Genesis in exchange for an equivalent amount in UST.
The firm also purchased a further $500 million worth of BTC from Three Arrows Capital within the week, according to the article.
Meanwhile, LFG's purchase of BTC as a reserve for the UST stablecoin has paid off handsomely, as the stablecoin is now among the top ten cryptocurrencies in terms of market value. The stablecoin is listed on major exchanges, and additional platforms are expressing interest in adopting it.
BTC is down almost 5% in the last 24 hours.
The statement comes as the world's most valuable cryptocurrency, by market capitalization, has lost a considerable portion of its value.
Bitcoin has lost 5.3 percent in the previous 24 hours after trading above $39,500 for most of the day. At the time of writing, the top asset class was trading at $36,900 on key markets.