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Terra Make Yet Another $176 Million BTC Purchase

Terra bought yet another $176 million worth of BTCs. The foundation’s BTC stash is just short of 2 billion dollars, as it closes in on its target of $10 billion.

Terraform Labs, the development firm behind Terra (LUNA), made its recent purchase over the weekend, according to a tweet by crypto researcher Pompliano. CEO Do Kwon first shared news on Wednesday that the foundation had purchased about $230 million in BTC. Barely half a week later, the foundation made yet another acquisition.

As reported by Crypto Adventure, Terra’s spirited acquisition of BTC is in preparation for Terra USD’s functional switch. Terra USD (UST) is the chain’s most popular stablecoin, and has before now been backed algorithmically. However, of late, possible vulnerabilities to UST’s algorithmic backing made Terraform Labs seek a better alternative – Bitcoin. With a bullish stance on BTC, the foundation seeks to back the entire UST stable coin in circulation with the leading cryptocurrency. 

Approaching Milestone at Incredible Speed

Terraform Labs made its first-ever BTC purchase in February. Since then, its foundation has purchased Bitcoins at an astounding rate, birthing comparisons with Macrostrategy’s strategy. Macrostrategy led by Michael Saylor possesses one of the biggest stash of BTC by a non-exchange wallet. Saylor’s Macrostategy commands 2 billion BTC in holdings at present, a figure that has been accrued since July 2020. Only recently, a SEC filing revealed Saylor’s company had made recent acquisitions of about 4167 BTCs.

There are suggestions that Terraform Labs could eclipse Macrostegy’s BTC holdings very soon. At present, the foundation currently trails behind Macrostrategy in total holdings by about $4 billion. At the current rate, this is likely to change even by next week. According to Do Kwon, Terra’s choice of Bitcoin as a reliable backing for UST confirms the leading cryptocurrency as a decentralized gold standard.  

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Following Terra’s BTC purchase on Wednesday, LUNA surged by more than 8%, hitting a record high of $119.18. Bitcoin however continues to consolidate at $42,000, despite the recent acquisition. LUNA is also down at present, off yesterday’s prices by 6%, as the crypto market lulls.

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