Key takeaways:
- Luna Foundation Guard (LFG) has added 2,508 BTC ($100M+) to the TerraUSD (UST) Reserve Fund
- LFG now owns $1.72 billion worth of Bitcoin
- LFG will spend $10 billion on BTC in total, according to Terraform Labs founder Do Kwon
Luna Foundation Guard adds $100M+ of Bitcoin to its UST Reserve
Luna Foundation Guard (LFG) has added an additional 2,508 BTC to its UST Reserve Bitcoin address and now holds 42,406 BTC, worth $1.72 billion at current market rates. The massive crypto acquisition comes just days after the organization looking to bolster the Terra ecosystem expanded its LUNA and UST backing reserves with over $170 million worth of Bitcoin.
LFG launched the TerraUSD (UST) Reserve fund in February to ensure the stability of UST’s algorithmically-controlled dollar peg and grow the broader Terra crypto ecosystem. The Bitcoin-denominated nature of the Reserve fund means that the reserved holdings are not directly correlated to the Terra ecosystem, which adds an additional layer of monetary stability. In addition to Bitcoin, the Terra team has recently acquired $100 million worth of AVAX to further diversify its reserves.
At the time of this writing, BTC accounts for approximately 55% of the total LFG Reserves, while LUNA accounts for roughly 28%, USDC 12.5%, and UST 4.7%.
With the latest acquisition, LFG now holds nearly as many BTC as electric car manufacturer Tesla, which is a publicly-traded company with the second-largest, 43,200 coins heavy BTC stash, according to Bitcoin Treasuries.
According to Terra founder Do Kwon, the company intends to grow its reserves to $10 billion BTC to “open a new monetary era of the Bitcoin standard.” The leading stablecoin company would need to own over 245,000 BTC at current market rates to fulfill the lofty goal.
In related news, Terraform Labs, the company behind the Terra ecosystem, announced on Wednesday the launch of the Global Founder Fellowship, a program backed by top VCs with the mission of supporting teams developing on Terra and boosting the growth of the decentralized platform.
