Terra’s Bitcoin Reserves Have Surpassed $1B As A Result Of Aggressive Buying During Price Drops.
Terra has started purchasing $10 billion in Bitcoin in order to utilize it as a reserve asset. The platform purchased 5,934 BTC for around $260 million between March 20th and March 24th, according to blockchain search and analytics engine Blockchair, as part of its ongoing accumulation plan for the commodity.
Terra has collected a total of 15,390.9 BTC as of Saturday, March 26th, increasing its total holdings to 24,954.95 BTC ($1,108,077,140.35). Terra, the world’s 40th largest Bitcoin holder, aims to wrap on Cosmos and deposit the funds in smart contracts that support the algorithmic UST stable currency, with additional purchases on the coming.
The acquisition comes just days after Do Kwon, stated that his company will buy $10 billion in Bitcoin to back its UST stablecoin as part of a larger campaign to disconnect from centralized stablecoins and create a more “sustainable and organic” stablecoin.
The proposal to create a Bitcoin reserve for UST has been in the works for some time, and the Luna Foundation just raised $1 billion for it through a private sale of LUNA tokens last month.
Kwon remarked after the occurrence that Terra will continue to stockpile reserves “until it becomes mathematically impossible for idiots to claim de-peg risk for UST.” Following that, he announced a $3 billion Bitcoin investment strategy before lifting the ceiling to $10 billion. If Kwon’s purchase goes through, it will cost more than 232,018.50 BTC (at current pricing), which is nearly double the amount held by MicroStrategy.
Given the vast sums at stake, it is reasonable to assume that the purchases will be phased in over time, ushering in a “new monetary era of the Bitcoin standard.”
Terra’s ecosystem has been riding the DeFi wave for the past two months, coming out on top thanks to its enticing UST stablecoin. The ecosystem just surpassed Solana, Ethereum, Cardano, and Avalanche as the most staked blockchain.
Kwon said in a podcast with ‘Udiverse’ on Tuesday:
“One of the fastest-growing categories of applications on Terra has been neo banks that use stable coin rails to make transactions easier and to expose people to defy structured yields,”
However, Terra’s acquisition of $10 billion in Bitcoin might spark a bullish run for the cryptocurrency, as the company continues to acquire with no plans to sell. As previously indicated, the slow process may provide Terra with much-needed attention, sparking a significant increase for Terra’s native coin, LUNA, which is presently trading at $90, up 110% in the last fifty days.
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Patrick
CoinCu News
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Bitcoin
Terra’s Bitcoin Reserves Have Surpassed $1B As A Result Of Aggressive Buying During Price Drops.
Terra has started purchasing $10 billion in Bitcoin in order to utilize it as a reserve asset. The platform purchased 5,934 BTC for around $260 million between March 20th and March 24th, according to blockchain search and analytics engine Blockchair, as part of its ongoing accumulation plan for the commodity.
Terra has collected a total of 15,390.9 BTC as of Saturday, March 26th, increasing its total holdings to 24,954.95 BTC ($1,108,077,140.35). Terra, the world’s 40th largest Bitcoin holder, aims to wrap on Cosmos and deposit the funds in smart contracts that support the algorithmic UST stable currency, with additional purchases on the coming.
The acquisition comes just days after Do Kwon, stated that his company will buy $10 billion in Bitcoin to back its UST stablecoin as part of a larger campaign to disconnect from centralized stablecoins and create a more “sustainable and organic” stablecoin.
The proposal to create a Bitcoin reserve for UST has been in the works for some time, and the Luna Foundation just raised $1 billion for it through a private sale of LUNA tokens last month.
Kwon remarked after the occurrence that Terra will continue to stockpile reserves “until it becomes mathematically impossible for idiots to claim de-peg risk for UST.” Following that, he announced a $3 billion Bitcoin investment strategy before lifting the ceiling to $10 billion. If Kwon’s purchase goes through, it will cost more than 232,018.50 BTC (at current pricing), which is nearly double the amount held by MicroStrategy.
Given the vast sums at stake, it is reasonable to assume that the purchases will be phased in over time, ushering in a “new monetary era of the Bitcoin standard.”
Terra’s ecosystem has been riding the DeFi wave for the past two months, coming out on top thanks to its enticing UST stablecoin. The ecosystem just surpassed Solana, Ethereum, Cardano, and Avalanche as the most staked blockchain.
Kwon said in a podcast with ‘Udiverse’ on Tuesday:
“One of the fastest-growing categories of applications on Terra has been neo banks that use stable coin rails to make transactions easier and to expose people to defy structured yields,”
However, Terra’s acquisition of $10 billion in Bitcoin might spark a bullish run for the cryptocurrency, as the company continues to acquire with no plans to sell. As previously indicated, the slow process may provide Terra with much-needed attention, sparking a significant increase for Terra’s native coin, LUNA, which is presently trading at $90, up 110% in the last fifty days.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
CoinCu News
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