Looks like the recent Bitcoin accumulation phase has institutions rushing to purchase BTC. Terra (LUNA) has been on a massive shopping spree lately in an effort to win the race. Following a busy weekend, Terra (LUNA) managed to accumulate over $1.57 billion worth of BTC. The stablecoin specific blockchain has been openly expanding into other networks in order to provide the largest decentralized money in the world. And where do you invest with an ambition like Michael Saylor? You buy lots and lots of Bitcoin
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Terra (LUNA) Bullish on Bitcoin
The public blockchain has been accumulating on BTC for the last months. The Luna Foundation Guard (LFG) is a non-profit organization found to support Terra has bought their way into becoming one of the largest BTC holders in the world.
At this point, LFG is the 19th richest Bitcoin address in the world holding approximately 39,898 BTC. Data provided by BitInfoCharts. This number now close to how much BTC Tesla is holding. According to Bitcoin Treasuries, Tesla is currently holding $1.7 billion worth of Bitcoin in their portfolio.
This comes at a time when Bitcoin is seeing a massive accumulation phase and the Bitcoin net outflow is at a record-high. Currently, over $4 billion worth of BTC is leaving exchanges every month. Terra (LUNA) has been riding this trend in order to back their stablecoin TerraUSD (UST).
Tell Me Why
Terraform Labs CEO Do Kwon announced plans last month to accumulate $10 billion worth of BTC. Primarily, the Bitcoin reserve is meant to back Terra’s native dollar-pegged stablecoin TerraUSD (UST).
Kwon stated in an interview on the Unchained Podcast that backing UST by Bitcoin can help build trust with the investors. Since Terra is quickly expanding into other blockchains, the foundation believes it to be necessary to build trust.
“Terra’s goal is to be the largest decentralized money in crypto, period. Its goal is not to be the largest stablecoin in the Terra blockchain, so we’re sort of expanding into let’s say the Solana ecosystem, Avalanche, Ethereum, Polygon. We plan to be everywhere where there are developers and users.
Now the thing is, different from growing stablecoin demand in the Terra ecosystem itself where trust in UST is extremely high – when you go to expand into these different ecosystems, then faith in LUNA’s collateral fitness is a lot less than what it is like in the Terra ecosystem.
But if you have Bitcoin as collateral, then nobody really questions it because it is the apex.”
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