Terra beats Tesla as second largest corporate Bitcoin holder after $1.5 billion purchase
Terra’s commitment to fill his treasury with Bitcoin has been re-bolstered with a new $1.5 billion purchase. This is the result of a promise made by the project to buy more than $10 billion worth of BTC to serve as a reserve for its stablecoin, UST. More importantly, though, is how this boosts the foundation’s reputation when it comes to companies holding digital assets.
Terra now has more BTC than Tesla
Before Terra started buying bitcoin, there were other corporate bodies that had already taken the plunge to do so. Think MicroStrategy, Galaxy Digital and Tesla when you think of this. While MicroStrategy had strengthened its lead as the company with the largest BTC holdings, Tesla had maintained its runner-up position. That is, until now.
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With his most recent purchaseTerra has now become the second largest corporate bitcoin holder, beating Tesla for the title. The deal was executed as an over-the-counter (OTC) purchase in partnership with cryptocurrency brokerage Genesis and Three Arrows Capital, a crypto trading and venture capital firm.
The Luna Foundation Guard (LFG), which had started collecting BTC earlier this year, has ramped up its purchases. It is one of the fastest accumulation trends of any business bitcoin holder. The first purchase took place in February and now, just three months later, the non-profit foundation now owns 80,393 BTC in total. They all come in at a dollar value of $2.9 billion at the time of the last purchase. It now contains almost double what Tesla has, which is currently at 48,000 BTC.
Repeat the promise
When Do Kwon, founder of Terra, had announced that the foundation planned to buy $10 billion worth of BTC for its treasury, the question was when. While participants in space had speculated that it would be a while before they started buying the coins, Terra had moved forward quickly to get started. It had gradually added BTC to its treasury, and in three months it has bought more than a quarter of the $10 billion BTC.
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As an extra move, Terra had also moved to add another cryptocurrency to his treasury. This time we turn to Avalanche (AVAX) for this. It had bought a total of $200 million in AVAXa trade that was conducted directly with the Avalanche Foundation.
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The Luna Foundation Guard Reserves have now grown to $3.23 billion. Bitcoin makes up 90.7% of the reserves with a total of 80,393 BTC valued at $2.93 billion. LUNA is the second largest with $126.63 million, accounting for 4.2%, AVAX at 3.5%, USDT at 0.8% and USDC at 0.7%.
Featured image of Portal do Bitcoin, chart from TradingView.com