TERRA's Luna Foundation Guard (LFG) acquires bitcoin, price of bitcoin rises
Over $100 million worth of
Bitcoin was purchased by LUNA Foundation Guard (LFG), with a total balance of
42,406 BTC. The sustained purchase of Bitcoin by the LUNA Foundation Guard has
generated a positive response among the investors.
In addition to building reserves for TerraUSD (UST), a dollar-pegged stable coin, the LFG helps to build the reserves necessary to support Terra's dollar-pegged stablecoin. According to the most recent figures, TerraUSD has been issued for close to $17 billion, which makes it the 14th largest digital asset by market capitalization.
In today's bitcoin rich list, the LFG wallet is currently ranked 18th largest bitcoin wallet. A large portion of the wallets above the LFG wallet is cold storage wallets for cryptocurrency exchanges.
Tesla's bitcoin treasury has 42,902 BTC and LFG is getting to the brink of surpassing it. In fact, LFG depends on 495.08 BTC to surpass Tesla's bitcoin vault. If LFG's bitcoin treasury were to surpass Tesla's, it would only fall below Microstrategy's cache of 125,051 BTC.
The LFG's bitcoin accumulation have not had a significant impact on LUNA's price. However, it has boosted the demand for Bitcoin, which has influenced the price positively. Analysts predict that Bitcoin will reach $50,000.
A little over three-quarters of the LFG's reserves are Bitcoin. The remaining percentage is USDC, USDT, and a small amount of LUNA.
The business intelligence company acquired a Bitcoin-collateralized loan last week, allowing it to purchase Bitcoin for the first time in two months using a Bitcoin-backed loan, well on its way to surpassing MicroStrategy's holdings.
Last week, LFG announced that it would diversify UST forex reserves with avalanche (AVAX) tokens while hoarding bitcoins as reserves to protect the stable coin UST.
CBW - External Analyst