Luna Purchased Another $1.5 Billion Worth of Bitcoin

Singapore-based Luna Foundation Guard (LFG) made yet another bitcoin purchase of $1.5 billion in Bitcoin for its UST stablecoin reserve.

  • According to CNBC on Thursday (May 5, 2022), LFG raised the funds through a $1 billion over-the-counter (OTC) swap with cryptocurrency broker Genesis and a $500 million worth of bitcoin purchase from hedge fund manager Three Arrows Capital.
  • In April, LFG bought BTC worth $100 million. Following the latest purchase, the UST algorithmic stablecoin reserve now holds around $3.5 billion in bitcoin, making it one of the top 10 BTC holders globally.
  • The co-founder and CEO of Terraform Labs, Do Kwon, back in March announced plans to raise $10 billion worth of BTC as collateral for UST. Do Kwon hopes to achieve this goal by the end of Q3 2022.
  • According to a statement from Do Kwon:

“For the first time, you’re 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.”