The Luna Foundation Guard (LFG), a nonprofit organization established in the Republic of Singapore dedicated to creating a reserve protocol for the algorithmic stablecoin UST, has purchased an additional USD 100m worth of bitcoin (BTC), increasing its total holdings to just over BTC 42,400 (USD 1.7bn).
Terra (LUNA)’s founder Do Kwon revealed the news on Twitter, saying that the LFG has bought “an additional [USD] 100M worth of BTC for UST fx reserves,” and sharing a link to the LFG reserves website.
According to this dashboard tracking the reserves, the LFG currently has around USD 2.25bn in reserves, 75.5% – or USD 1.7bn – of which is in bitcoin. Another 17.7% is in USD coin (USDC), equivalent to USD 398.6m.
Notably, LFG’s reserve balance in US dollars has taken a hit over the last couple of days as the price of BTC and other cryptoassets plunged. At its highest, the reserve reached USD 3.658bn in value.
As previously reported, Terra announced in February that it would partly back its stablecoin UST with bitcoin. Do Kwon claimed that the foundation aims to purchase USD 10bn in bitcoin.
“UST with [USD]10B+ in BTC reserves will open a new monetary era of the Bitcoin standard,” he said. “P2P [peer-to-peer] electronic cash that is easier to spend and more attractive to hold btc.”
At 7:20 UTC on Wednesday morning, BTC is trading at USD 40,047, unchanged in a day and down more than 12% in a week.
At the same time, the ninth coin per market capitalization, LUNA, is changing hands at USD 85.6. It is up 1.1% in a day and down 26.5% in a week.
Some users claim that since the LFG purchases Bitcoin through “off-market deals,” it does not affect prices.
“Why not buy it on-market and show other market participants that there is some buying strength, rather than off-market deals with instos/whales? I honestly couldn’t care less about off-market purchases,” one user said.