Terra is now the third-largest BTC holder in the world with over 30,000 Bitcoins
The massive bag serves as a reserve to support the protocol’s proprietary Stablecoin UST
CEO Do Kwon has said that Terra plans to acquire $10 billion worth of Bitcoin.
Terra, the blockchain network that powers the world’s ninth-largest cryptocurrency by market cap LUNA, now holds some 30,727 BTC. As of the time of writing this report, Terra’s total BTC vault is valued at approximately $1.1 billion.
Terraform Labs CEO confirmed via a Twitter thread on Thursday that the massive purchase is earmarked for a bitcoin-denominated reserve meant to support UST prices and hedge against drastic market sell-offs. Kwon wrote:
“2/ Purchasing significant amounts of bitcoin creates information asymmetry between insiders (prof traders & desks) and everyone else. _I_ am not buying bitcoin, the reserve is for the communities of users that use UST – numbering in the millions. Everyone should know.
Terra has accumulated its BTC vault over a few months through The Luna Guard Foundation (LFG), a non-profit organization launched to aid the growth of Terra’s ecosystem. LFG’s council has reportedly approved several burns of LUNA to mint UST. After the mint, the proceeds are then deployed towards buying more BTC.
The LFG and Kwon have both said that Terra could eventually purchase as much as $10 billion worth of Bitcoin for its UST reserves. CEO Kwon has also previously said that the protocol plans to become the single largest holder of BTC in the world, rivaling Satoshi Nakamoto’s BTC stash.
Institutions and Startups Bet Big on Bitcoin
While BTC continues to function as a market leader in the digital asset industry, the world’s leading cryptocurrency has also garnered mainstream attention from reputable institutions and heavyweight companies.
Both Michael Saylor’s MicroStrategy and Elon Musk’s Telsa have the so-called ‘digital gold’ on their respective balance sheets. Saylor’s firm in particular also recently secured a $205 million Bitcoin-collateralized loan from Silvergate Bank. According to the report, MicroStrategy plans to deploy the cash to buy more BTC.