Luna Foundation acquires $1.5 billion worth of BTC, Surpasses Tesla As Second Largest Corporate Holder Of Bitcoin

Key Takeaways

  • LFG acquired 37,863 BTC worth $1.5 billion in OTC swaps from Genesis Trading and Three Arrows Capital
  • LFG is now one of the top 10 bitcoin holders in the world
  • The Total Bitcoin reserve of LFG is valued at over $3.1 billion

Luna Foundation Guard, the non-profit organization credited for creating Terra’s UST, has acquired $1.5 billion of BTC, surpassing Tesla to earn the spot of the second-largest corporate holder of BTC, valued at over USD 3 billion.

The transaction was further facilitated by cryptocurrency hedge fund 3AC and cryptocurrency prime broker Genesis. The company had closed a USD 1.5 billion over-the-counter (OTC) purchase of 37,863 bitcoin. Before this purchase, the initial $1 billion worth of BTC acquired by LFG was facilitated by a cryptocurrency prime broker, Genesis, through an Over-the-counter swap of UST Stablecoins for BTC. This OTC transaction was also the first of its kind at the achieved magnitude. The remaining $500 million was obtained through the leading cryptocurrency hedge fund called Three Arrows Capital (3AC).

Commenting on this notable transaction, Do Kwon, LFG Governing Council member and Co-Founder and Chief Executive Officer of Terraform Labs said, “LFG’s mission to support the stability and adoption of the UST stablecoin continues with the latest deal acquiring BTC from Genesis for the UST Forex Reserve”. Do Kwon, further in his statement to the media, said, “For the first time, you are starting to see a pegged currency that is attempting to observe the bitcoin standard. It’s making a strong directional bet that keeping a lot of those foreign reserves in the form of a digital native currency is going to be a winning recipe.”

Joshua Lim, who holds the post of the head of derivatives at Genesis, talking about the recent development said “Terra’s remarkable growth has continuously reshaped crypto markets over the last two years, Genesis is excited to be a liquidity partner to the Terra ecosystem, connecting it to a broader audience of institutional market participants.”

The price of LUNA also rallied to an all-time high of $119.18 in April. The Bitcoin reserves of LFG has now totaled 80,394 BTC and is valued over $3.1 billion, making the organization among the top 10 bitcoin holders in the world. MicroStrategy Inc. is at present the only corporate entity that holds more Bitcoin than LFG.

Default image
Saniya Raahath

Can’t find what you’re looking for? Type below and hit enter!