Luna Foundation Guard Acquires $1.5B in Bitcoin to Reinforce Stablecoin Reserves
The Luna Foundation Guard (LFG) has acquired 37,863 Bitcoins as it continues to move towards its target of $10 billion of stablecoin reserves before the end of Q3.
- The purchases were made in the form of two OTC deals, one a $1 billion swap of US Terra (UST) for bitcoin (BTC) with crypto prime broker Genesis, and the other a $500M bitcoin buy from hedge fund Three Arrows Capital, according to a tweet on Thursday.
- LFG's total bitcoin holdings now foot to 80,394, worth just shy of $3 billion at press time. UST is the tenth largest cryptocurrency with a market capitalization of $18.4 billion, according to Coin Gecko.
- “For the first time, you’re starting to see a pegged currency that is attempting to observe the Bitcoin standard,” said Do Kwon, cofounder and CEO of Terraform Labs. “It’s 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.”
- Luna, the governance token of the Terra blockchain, was down by 4.8% on Thursday as a market-wide sell-off knocked $1.3 billion off its market cap. Bitcoin is lower as well, making LFG's $1.5 billion purchase now worth $1.4 billion.
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