Big Bitcoin Buy: Terra Adds Another $135 Million To Its Bitcoin Reserve | news

Terraform Labs is building a multi-billion dollar Bitcoin reserve

The goal is to stabilize its own cryptocurrency Terra USD

Terraform Labs CEO Wants to Introduce the Bitcoin Standard as a Fixed Monetary Policy Strategy

Terraform Labs invests an additional $135 million in its bitcoin stash

Do Kwon, co-founder and CEO of blockchain company Terraform Labs, announced that his company had acquired over $1 billion in bitcoins since the end of January this year, according to a Bloomberg report. This includes a total of four transactions from Monday last week totaling approximately $135 million in Bitcoin. Do Kwon confirmed to Bloomberg News that the purchase was made through a bitcoin address from Singapore-based Luna Foundation Guard. As the evaluation of the available data showed, a total of 27,784.96954740 Bitcoins were purchased via the given address.

The advertisement

Also benefit from lower prices: trade cryptocurrencies directly with leverage now.

act now

77% of retail investor accounts lose money when trading CFDs with this provider. You need to carefully consider whether you can afford to take the high risk of losing your money.

After recouping much of the losses it suffered earlier in the year, Bitcoin was last seen trading again around $43,500. In March, Terraform Labs CEO Do Kwon announced that his company had $3 billion in reserves to further increase the reserve that it intended to use to stabilize its own cryptocurrency, Terra USD. (UST). According to other statements by the CEO, this reserve could reach a volume of up to 10 billion US dollars in the future.

The blockchain company wants to use it to stabilize its own cryptocurrency

By building its multi-billion dollar Bitcoin reserve, Terraform Labs intends to hedge the value of UST, the native stablecoin of Terra’s ecosystem. As the Bitcoin Courier explains, unlike other stablecoins, this currency is not based on US dollars deposited in a bank account, but on a protocol. The peculiarity of the concept is that each buyer of Terra’s stablecoin must buy LUNA on the market at the same time and then burn it: the purchase of UST is therefore only possible if LUNA is destroyed at the same time. Terraform Labs’ massive purchase of Bitcoin may have been a response to criticism that this constellation leads to less stability than centralized US dollar-dependent stablecoins. The company hopes to be able to sufficiently stabilize its cryptocurrency from the additional value flowing into the Terra system from the large amounts of Bitcoin acquired.

Although the Bitcoin Courier believes that it is unlikely that Do Kwon will be able to raise Bitcoin to the $48,000 level on his own through his massive buying, the action can still be seen as a clear statement that the Bitcoin should always be considered the most important asset in the entire crypto market and can therefore serve as an excellent store of value in the decentralized finance world of Terra. According to the Bitcoin Courier, this strong message could have a noticeable impact on the market and investors.

In any case, the CEO of Terraform Labs firmly believes that a sufficiently large Bitcoin reserve is quite sufficient to stabilize his stablecoin. “The reason we’re so interested in Bitcoin in particular is that we believe it represents the strongest reserve digital asset,” Kwon told Bloomberg. “UST will be the first native internet currency to implement the Bitcoin Standard as part of its monetary policy.”

Thomas Weschle / Editor

Image sources: Lightboxx /, mk1one /

Leave a Comment