The Luna Foundation Guard has secured $1.5 billion in BTC to bolster its U.S. Terra reserves, its most popular stablecoin. Three Arrows Capital and Genesis Trading assisted the company in acquiring 37,863 BTC through over-the-counter swaps.
An acquisition from Three Arrows Capital and an over-the-counter $1 billion trade with Genesis boosted the total amount raised to $500 million. As a result, LFG has risen to become one of the top ten holders globally, with a current BTC reserve of $3.5 billion.
TerraUSD Remains a Stablecoin Peg
The LFG’s acquisition of the UST Bitcoin Fund represents a significant step forward for the company. It will enable it to continue amassing massive sums of Bitcoin. The pool’s purpose is to maintain the TerraUSD (UST) stablecoin peg. It also hoped to increase UST’s acceptance as the largest decentralized stablecoin in the market.
Terraform Labs’ objective of $10 billion in assets will most probably be covered by the end of the third quarter. It is according to Do Kwon, the company’s founder.
He went on to say that for the first time, a pegged currency is seeking to adhere to the bitcoin standard. It’s betting that maintaining a large portion of those foreign currency reserves in a digital native currency will be a profitable strategy.
Despite the absence of data supporting the monetary policy’s success, Kwon believes it is symptomatic of how society is currently over-printing. He also mentioned that folks are working to restore a more stable financial system.
More Crypto Investors are Emerging
According to Joel Kruger, a crypto analyst with LMAX Group, the growing number of corporate investors can have a substantial impact on Bitcoin’s value. He further mentioned that this purchase type could bring investors long-term interest and liquidity.
In addition to Luna Foundation Guard, other companies have made high-profile Bitcoin purchases. In April, MicroStrategy, a publicly-traded business, increased its Bitcoin reserves to 129,218 BTC.
MicroStrategy was the first corporation to invest in cryptocurrencies in 2020, believing it would be a superior long-term investment to the US currency. The corporation claims that investing in Bitcoin will allow them to guard against inflation while also generating a higher return.
In a regulatory filing, Tesla, the electric vehicle maker, also revealed that it had invested $1.4 billion in Bitcoin. The corporation owns 42,902 Bitcoin units, which is currently at a value of over $2 billion. On the other hand, Galaxy Digital Holdings have over 16,400 Bitcoin units. Galaxy Digital Holdings is a crypto-focused merchant bank.
Terra Redeems Itself from Its Loss
In the last four weeks, Terra (LUNA) has lost nearly 30% of its value. Despite its outstanding success, it struggles to sustain its present level of support of $85. After switching from the BUSD to the US dollar on April 18, the Terra stablecoin became the world’s third-largest stablecoin.
Over $250 million in institutional investor money entered the Terra DeFi ecosystem on April 26, according to Fireblocks. Despite the excellent news, investors are still wary about purchasing the stablecoin.
Over the last month, the number of Terra’s decentralized applications has surged by more than 40%. The total value locked on the network hit an all-time high of 254 million units.
In 2022, the total amount of deposits Terra Dapp made was $21.2 billion, up 77% from the previous year. Binance Chain’s Dapp, a scaling solution, presently has a TVL of $9.8 billion, up 9% from the prior year.
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