The Luna Foundation Guard (LFG), which controls the Terra project, has continued its BTC purchase spree as it announced the purchase of nearly $105M worth of BTC between April 13 and April 15. The LFG team revealed that it would keep buying more BTC until it overtook MicroStrategy as the number one BTC investor globally.
After Friday’s purchase, LFG’s BTC holdings are valued at nearly $1.73B (42,531 BTC). However, it is still some way off from overtaking MicroStrategy as the leading BTC holder.
Ranking Among The Top 20 BTC Holders
Per Whalestats data, the LFG’s first BTC purchase this week occurred on April 13, when the foundation bought $100m worth of BTC. Then, it purchased another $5M worth of BTC on Friday. While it aims to topple MicroStrategy’s position as the leading BTC holder, the LFG’s recent BTC purchases only push the foundation to rank among the top 20 BTC whales.
Hence, there is a considerable distance between LFG’s BTC holdings and MicroStrategy’s (currently about 129, 219 BTC). Furthermore, MicroStrategy bought an additional 4,168 BTC earlier this week to further strengthen its position as the leading BTC holder.
At about the same time that MicroStrategy made its recent purchase, LFG also made a BTC purchase of about 1K BTC higher than that of MicroStrategy. LFG has been consistent in its BTC purchase following three successive days of BTC purchases recently in the hope to invest its $3Basset in an inflation-proof asset.
One of Terra’s founders, Do Kwon, remarked that the project aims to generate about $7b to increase its seed funds from $3B to $10B by the beginning of the next quarter. Unfortunately, the prices of BTC and Terra haven’t responded positively to these recent purchases as many industry analysts consider that the crypto market is still in correction and won’t likely be affected by these recent BTC whale purchases.
Providing Strong Reserves For UST Through Top Digital Assets
While some crypto investors may be surprised that Terra keeps accumulating BTC, many industry analysts aren’t surprised. Terra insiders reveal that the recent BTC purchases are part of the Terra CEO’s plans to provide string reserves for UST through top digital assets, mainly BTC.
Kwon said, “we are strong BTC advocates, and we’ll keep buying whenever we discover the opportunity to do so.” then, he added, “our ultimate goal is to strengthen the UST reserve with only the top digital assets.” If Terra continues its BTC purchase spree, the UST would eventually be a stablecoin pegged almost on a 1:1 ratio with the BTC.
Zero Doubts About BTC’s Long-Term Potential
Kwon further said there are almost zero doubts about BTC, and it remains the only digital asset that continues to drive the performance of the crypto market. Even though Terra has made a lot of BTC purchases, it has also been buying other altcoins.
Recently, it bought $240M worth of AVAX. While explaining the decision of the company to buy AVAX, Kwon stated that the Avalanche network has been growing at a fast rate in the last few months. Also, there have been several projects useful for the short and long-term that are being launched on the network.