Terra, a blockchain group that uses Bitcoin (BTC) to back its new USD stablecoin, has bought over 5,000 BTC.
Wallet data confirms that Terra added another 5,040 BTC to its balance on April 6, which is now 35,768 BTC.
Tera buys a dive… again
The move comes after a multi-day hiatus from buying the blockchain.
This week, co-founder Do Kwon told followers on Twitter that the scheme is “still underway,” while plans for a “permanent” purchase of BTC were laid out in a large media interview.
Kwon explained that Terra wants to create a “decentralized foreign exchange reserve” with bitcoin as collateral. The TerraUSD (UST) stack coin will be backed by both BTC and the Terra LUNA token.
Kwon said last month that the original plan was to include $3 billion in bitcoin reserves, and that that number would increase to $10 billion, with additional bitcoin purchases thereafter depending on how much of the earth’s treasury was minted.
A non-profit organization associated with Terra, the Luna Foundation Guard (LFG), is an organization attached to the BTC wallet and involved in the underground reservoir guarantee. The latest addition means that it is still the 29th largest BTC wallet.
Bitcoin wallet LFG (screenshot). Source: BitInfoCharts
Although Kwon told the media that these large acquisitions were “not a decision by the company’s treasury,” LFG’s portfolio balance sheet is already on track to compete with the largest such treasury, MicroStrategy. The latter also increased his BTC holdings this week by purchasing around 4,000 coins for a total of 129,218 BTC.
By comparison, if Terra completes the remainder of its $10 billion distribution at its current spot price of $45,270 BTC/USD, it will be able to buy approximately $184,800 more BTC.
Kwon, for his part, could already be the biggest bitcoin whale in the world.
Spot price ignores hackneyed history
Meanwhile, Bitcoin’s price action did not match the extensive commitments of either Terra or MicroStrategy.
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After failing to break the 200-day moving average close to $48,000, according to Cointelegraph Markets Pro and TradingView, the BTC/USD pair fell overnight, also threatening to lose its recently broken annual opening price of $46,200.
This loss could mean the return of the trading zone it held until 2022 before last week’s outbreak.
However, reaction to Kwon remained positive.
The popular Twitter account @CivEkonom claimed, “Luna StableKwon added about 4,000 BTC to the stack. Ultimately, this amount will be halved.”