The Luna Foundation Guard has raised $1.5 billion in bitcoin to bolster its U.S. currency holdings. Terra is the most widely used stablecoin.
Three Arrows Capital and Genesis Trading assisted the company in acquiring 37,863 BTC through over-the-counter swaps.
$10M Goal Achieved
An acquisition from Three Arrows Capital and a $1 billion over-the-counter 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 in the world, with a $3.5 billion BTC reserve.
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.
The organization’s objective of $10 billion in assets, according to Do Kwon, will most likely be accomplished by the end of the third quarter.
For the first time, he continued, they are seeing a pegged currency that is aiming to follow the bitcoin standard. It’s betting that maintaining a large portion of those foreign reserves in the form of a digital native currency will be a profitable strategy.
The absence of data demonstrating monetary policy’s efficacy has been shown. Kwon, on the other hand, believes it is emblematic of how society is currently over-printing. He also mentioned that folks are working to restore a more stable monetary system.
Investors Start to Get into Crypto
LMAX Group’s crypto analyst is Joel Kruger. He believes that the growing number of corporate investors will have a substantial impact on bitcoin’s valuation. He further mentioned that this type of purchase can bring long-term interest and liquidity to investors.
Other companies, in addition to Luna Foundation Guard, have made high-profile Bitcoin purchases. MicroStrategy, a publicly traded business, increased its Bitcoin reserves to 129,218 BTC in April.
MicroStrategy became the first firm to invest in cryptocurrency in 2020. They believe it will outperform the US dollar as a long-term investment. The corporation claims that investing in Bitcoin will allow them to hedge 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 42,902 Bitcoin units owned by the corporation are currently valued over $2 billion. Over 16,400 Bitcoin units are held by Galaxy Digital Holdings, a crypto-focused merchant bank.
Terra on Recovery
Terra (LUNA) has lost nearly 30% of its value in the last four weeks. Despite its outstanding success, it continues to struggle 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 26th, according to Fireblocks. Despite the excellent news, investors are still wary about investing in 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 made by Terra’s Dapp was $21.2 billion, up 77% from the previous year. Binance Chain’s Dapp, which is a scaling solution, presently has a TVL of $9.8 billion, up 9% from the previous year.
