Terra, the blockchain company that uses bitcoin (BTC) to back its new US dollar stablecoin, has bought over 5,000 BTC.
Wallet data confirms that on April 6, Terra added another 5,040 BTC to its balance, which now totals 35,768 BTC.
Terra buys the dip…again
The move comes after a multi-day lull in buying activity through the blockchain protocol.
This week, however, co-founder Do Kwon told Twitter followers that the program was “just getting started,” while a mainstream media interview laid out plans for “permanent” BTC purchases.
Terra, Kwon explained, wants to build a “decentralized forex reserve” using Bitcoin as collateral. The stablecoin TerraUSD (UST) will have both BTC and Terra’s native LUNA token as support.
Originally planned to include $3 billion in bitcoin reserves, that number will grow to $10 billion, Kwon said last month, with additional BTC purchases thereafter depending on how much UST is minted.
– Watered my plants
– Wrote some emails
– 230 million bought $BTC
– House vacuumed
– Had a few McDonalds
Now it’s time to walk the dog
— Do Kwon (@stablekwon) April 6, 2022
The Terra-affiliated non-profit organization, the Luna Foundation Guard (LFG), is the entity associated with the BTC wallet involved in collateralizing UST. The latest addition means it remains the 29th largest BTC wallet.
While Kwon told the media that such large buy-ins are “not a corporate treasury decision,” the LFG wallet balance is already on its way to competing with the largest treasury of its kind, MicroStrategy. The latter also boosted its BTC reserves this week, buying around 4,000 coins for a total of 129,218 BTC.
For comparison, should Terra complete the remainder of its $10 billion allocation at the current BTC/USD spot price of $45,270, it could buy approximately another 184,800 BTC.
Kwon, in turn, is already considered the largest bitcoin whale in the world.
The spot price shakes off a tired narrative
Bitcoin’s price action, meanwhile, has failed to continue to respond to large-scale commitments from either Terra or MicroStrategy.
Related: Bitcoin retail FOMO is up the most since 2017, but BTC price could still be ‘doomed’ – analyst
After failing to break the 200-day moving average near $48,000, BTC/USD fell overnight to also threaten a loss from the newly broken annual opening price of $46,200, data from Cointelegraph Markets Pro and TradingView shows .
Such a loss could mark a return to the trading range it lingered in throughout 2022 until last week’s breakout.
Despite this, reactions to Kwon have remained positive.
“Luna StableKwon just added about 4000 BTC to stack. This will eventually have the effect of a halving,” according to popular Twitter account @CivEkonom argued.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
https://cointelegraph.com/news/terra-lfg-outdoes-microstrategy-with-5k-btc-buy-after-bitcoin-price-dips-under-45k Terra LFG outperforms MicroStrategy with 5,000 BTC purchases after bitcoin price plunges below $45,000