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Monday, March 27, 2023

Luna Foundation Acquires $1.4 Billion in Bitcoin, Decentralized Reserve Stash Rises to 80,394 BTC

Luna Foundation Acquires $1.4 Billion in Bitcoin, Decentralized Reserve Stash Rises to 80,394 BTC – The Luna Foundation Guard reported purchasing 37,863 bitcoin (BTC) on May 5, 2022, valued at just over $1.4 billion. By the end of the third quarter of this year, LFG, a Singapore-based non-profit, hopes to have $10 billion in stablecoin reserves.

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While LFG purchased 80,394 bitcoins, it also purchased $100 million in avalanche (AVAX) to enhance the algorithmic stablecoin UST’s decentralized FX reserves.

While LFG’s public address may be found on the blockchain, the 37,863 bitcoin purchased were obtained through two over-the-counter (OTC) transactions. According to the LFG press statement, $1 billion in UST was exchanged for BTC via primary broker Genesis, while the remaining $500 million was purchased from hedge fund Three Arrows Capital.

Also Read: El Salvador’s Bitcoin Volcano Bonds Launch Still on Hold, According to Treasury Minister

During the launch, Do Kwon, the cofounder and CEO of Terraform Labs, told CNBC that the pegged currency’s reserves are in line with the Bitcoin standard.

“For the first time,” Kwon noted, “you’re starting to see a pegged currency that is aiming to follow the Bitcoin standard.” The Terraform Labs founder continued, “It’s making a significant directional bet that maintaining a lot of those foreign assets in the form of a digital native currency is going to be a winning recipe.” According to the press announcement, LFG’s acquisition was originally worth $1.5 billion, but it is now only worth $1.4 billion in BTC.

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According to US Securities and Exchange Commission (SEC) filings, LFG’s current bitcoin wallet currently owns more bitcoin than Tesla’s bitcoin reserves, which total 42,902 bitcoin. LFG’s bitcoin holdings are only 48,824 bitcoins short of Microstrategy’s 129,218 bitcoins.

Also Read: World’s Largest Family-Owned Private Bank Now Offers Crypto Investments via SEBA Bank

Meanwhile, bitcoin (BTC) fell to a low of $36,520 on Thursday, and the top cryptocurrency has lost 5% in the last 24 hours.

“The jury’s still out on the effectiveness on the subject,” Kwon concluded on Thursday, “but I think it’s symbolic in the sense that now that we live in a time when there’s excess money printing across the board and when monetary policies are highly politicized, there are citizens who are self-organizing to try to bring systems back to a sounder paradigm of money.”

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