By Shelly Melancon (Switzerland)
Luna Foundation Guard (LFG), the parent company of the LUNA digital currency, is currently on an all-out accumulation spree of Bitcoin tokens as it plans to displace MicroStrategy as the biggest holder of Bitcoin reserve.
With 42,500 BTC coins in its possession, the Luna Foundation is on its way to achieving its goal.
The Luna Foundation is Increasing Its Bitcoin Cache
The Luna Foundation recently announced its acquisition of $100 million worth of BTC on Wednesday and a further $5 million worth of tokens on Friday, 15 April. The combined purchase moved the LFG’s Bitcoin stash to 42,530.82 BTC, valued at over $1.72 billion.
The recent purchase has elevated Luna to 18th place among the most significant Bitcoin reserve holders; the foundation aims to attain the top spot.
In contrast, MicroStrategy holds about 129,218 Bitcoin, with the firm holding an additional 4,167 BTC over the past week to keep the approaching Luna Foundation some distance behind it.
At MicroStrategy’s latest buy, LFG bought $5,040 BTC worth $230 million. It is worth noting that LFG’sLFG’s consistent approach to buying million dollars’ worth of BTC for three consecutive days is geared toward burning the excess $3 billion cash at its disposal.
According to Do Kwon, Terra’sTerra’s co-founder, the company has $3 billion in funds for the Bitcoin acquisition project for expanding the reserves. Plans are underway to increase the fund to $10 billion in the next few months.
However, the market has not reacted to the massive purchase, with both Bitcoin and Terra shrinking in value due to the broader crypto market correction.
Reasons for Terra’s Bitcoin Accumulation
To those yet to know the motive behind Terra’s massive Bitcoin accumulation, the plan is o back the UST token with Layer-1 digital assets, and Bitcoin takes the bulk of the purchase. Other top cryptos are also added to the mix to diversify it.
According to Kwon, the Luna Foundation believes in the capability of Bitcoin to serve as a strong anchor for the LUNA token against market volatility, and the foundation will continue to buy more whenever the opportunity presents itself.
The strategy would place the UST as a hybrid stablecoin unique from others, where users could trade a dollar of UST for $0.99 BTC. Kwon further added that Bitcoin’s status could not be questioned as it is the only reserve digital asset that has proven its worth above others.
Aside from Bitcoin, the LFG has been accumulating Avalanche, where a $200 million worth of the native AVAX was purchased. Choosing AVAX above others is easy due to its network’s unprecedented growth and robust community support for its blockchain.
Terra is not stopping at just Increasing its reserves; the LFG has been making a concerted effort to elevate the token by leveraging its growing UST stablecoin to chart a promising path for LUNA.
For now, the goal is to displace MicroStrategy, and the LFG is not relenting on that.
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