Key takeaways:
- The Luna Foundation Guard (LFG) has acquired 4,120 BTC over the weekend, worth over $170 million
- The non-profit foundation now holds nearly 40,000 BTC in its UST Forex Reserve
- Last week, LFG announced it will diversify its Reserve fund with $100 million of AVAX
Luna Foundation now holds nearly 40,000 BTC
The Luna Foundation Guard (LFG), a non-profit organization launched in early 2021 to ensure stability and growth of the Terra ecosystem, has acquired more than $170 million worth of Bitcoin over the weekend. The company’s treasury that is designed to maintain UST’s dollar peg now has 39,899 BTC in its UST Forex Reserve wallet.
On April 10, LFG’s digital account was funded with 4,120 BTC in a series of four large transactions.
Launched in late February, a Bitcoin-denominated stablecoin reserve ensures that UST’s algorithmically-controlled peg doesn’t run amok if demand outstrips supply, or vice-versa. At the time of the fund’s launch, the Terra team noted that the Reserve fund provides a “further layer of support for the $UST peg using assets that are considered less correlated to the Terra ecosystem, like Bitcoin.”
In March, Terra co-founder Do Kwon announced on Twitter that the crypto company intends to spend $10 billion on Bitcoin to expand the funds’ liquidity and “open a new monetary era of the Bitcoin standard.”
In addition to acquiring nearly 40,000 BTC over the past couple of months, the LFG has announced last week it will be investing in other digital assets to further diversify its reserve holdings. As a part of the recently unveiled strategy, LFG plans to add $100 million worth of AVAX to the UST Reserve to “demonstrate its commitment to Avalanche.”
