Terra, the Blockchain outfit that uses Bitcoin (BTC) to back its new dollar stablecoin, has bought more than 5,000 BTC.
The wallet data confirms that on April 6, Terra added another 5,040 BTC to his balance, which now stands at 35,768 BTC.
Terra buys during the fall… again
The move comes after a multi-day lull in buying activity by the Blockchain protocol.
This week, the co-founder Do Kwon told his Twitter followers that the scheme was “just beginning,” while an interview with media outlets laid out plans for “perpetual” purchases of BTC.
Terra, Kwon explained, wants to build a “decentralized currency reserve” with bitcoin as collateral. The stablecoin, TerraUSD (UST), will be backed by both BTC and Terra’s native token, LUNA.
It was initially planned to include $3 billion in bitcoin reserves, but that figure will be expanded to $10 billion, Kwon said. last month. From then on, additional purchases of BTC began, depending on the amount of UST that is minted.
Today I:
– Watered my plants
– Write some emails
– Bought 230M in $BTC
– vacuumed the house
– had some mcdonaldsNow off to walk the dog
— Do Kwon (@stablekwon) April 6, 2022
Today
– I have watered my plants
– I have written some emails
– I have bought USD 230 million in BTC
– I have vacuumed the house
– I ate a McDonald’s meal
now to walk the dog
The non-profit organization attached to Terra, the Luna Foundation Guard (LFG), is the entity attached to the BTC wallet that participates in the UST guarantee. With this latest addition, it remains the 29th largest BTC wallet.
Although Kwon told the media that such large purchases were “not a corporate treasury decision,” LFG’s wallet balance is already on track to compete with the largest such treasury, MicroStrategy’s.. The latter has also increased its BTC reserves this week: it bought some 4,000 coins for a total of 129,218 BTC.
For comparison, if Terra were to complete the remainder of its $10 billion allocation at the current spot price for the BTC/USD pair of $45,270, it would be able to purchase roughly another 184,800 BTC.
Kwon, meanwhile, has already become the world’s largest bitcoin whale.
Spot price breaks out of a tired narrative
For its part, Bitcoin price action has not continued to react to large-scale commitments from Terra or MicroStrategy.
After failing to break the 200-day moving average near $48,000, the BTC/USD pair fell overnight to also threaten to lose the newly reached yearly opening price of $46,200, as data from Cointelegraph Markets Pro and TradingView show.
Such a loss could mean a return to the trading range it was in during 2022 until last week’s rise.
Nevertheless, reactions to Kwon remained positive.
“Luna StableKwon just bought about 4,000 BTC. This will eventually have the effect of a halving,” argument the popular Twitter account @CivEkonom.
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