Terra Bitcoin Cash Hits 42,500 BTC as It Follows Michael Saye Microstrategy
   
- Over the weekend, the Luna Foundation added to its bitcoin holdings, bringing it closer to 43k bitcoins.
- The Luna Foundation is now ranked as the 18th largest bitcoin holder in the world.
- The project’s founder stated that the accumulation of assets will “open a new monetary era of the bitcoin standard.”
Luna Foundation Guard (LFG) is going all-out on its bitcoin accumulation spree as it intends to overtake Microstrategy to be one of the largest holders of the cryptocurrency. With 42,530 bitcoins, the foundation is well on its way to achieving its lofty ambitions.
The Luna Foundation adds to its stash
The Luna Foundation Guard (LFG), in charge of the Terra Protocol, announced the purchase of $100 million worth of bitcoin on Wednesday and another $5 million in BTC yesterday. The recent purchase gave LFG 42,530.82 bitcoin, which is worth just over $1.72 billion.
The purchase puts the Luna Foundation off guard as the 18th largest holder of bitcoin as it ranks at the top of Microstrategy. MicroStrategy holds 129,218 bitcoins and the company stacked an additional 4,167 bitcoins last week to create some distance between it and LFG.
At the time of MicroStrategy’s latest purchase, LFG bought 5,040 BTC for $230 million. The accumulation of bitcoin by LFG was a consistent approach with the organization buying $125 million worth of BTC for three consecutive days, in an effort to burn off its $3 billion cash balance.
Terra co-founder Do Kwon revealed that while the project had $3 billion in “ready to seed” reserves, there are plans to increase that figure to $10 billion in the coming months. Market reaction to buys has been weak, with Bitcoin and Terra faltering in view of the broader cryptocurrency market correction.
   
Why loading up on terra bitcoin
For the uninformed, Terra’s purchase of bitcoin may have come as a big surprise, but a closer look reveals the mind behind the move. The purchase is part of Kwon’s plan to back UST with Layer-1 assets, with bitcoin making up the majority.
“We are big believers of bitcoin, so we will just keep buying whenever the opportunity arises.” They said. “Over time, Terra is being supported by a basket of top layer 1 assets.”
This would give UST the status of a hybrid stablecoin that would allow users to trade $0.99 worth of BTC for BTC. Kwon said that bitcoin is difficult to question and that crypto is “the only hard reserve asset that has been proven by digital currencies”.
In addition to the bitcoin buying spree, Terra is loading up on the avalanche with unprecedented purchases of $200 million worth of AVAX. Kwon said that the choice of AVAX was made easy because of the great development of its ecosystem and the loyalty of the community around blockchain.
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