Luna Foundation Guard (LFG), a non-profit organization focused on developing the Terra ecosystem, has closed a $1.5 billion over-the-counter (OTC) purchase of 37,863 BTC. This means the foundation has surpassed Tesla as the second-largest corporate holder of BTC.
The funding round was led by prominent digital currency prime broker, Genesis. Three Arrows Capital (3AC), a leading crypto hedge fund also participated, with the LFG purchasing $500 million worth of BTC via the hedge fund.
Prior to this purchase, LFG held 42,530 BTC currently valued at over $1.6 billion in this wallet. Tesla currently holds 43,200 BTC, currently valued at close to $1.7 billion. This purchase of 37,863 BTC means that the LFG has fulfilled its promise to purchase $3 billion worth of BTC in the short term, to back its programmable stablecoin, UST.
What you should know
- Recall that the LFG plans to purchase $10 billion worth of BTC to back its stablecoin. This additional purchase means that the foundation has fulfilled one-third of its commitment.
- The purchase will be used by the LFG to strengthen the UST Forex Reserve backing the Terra ecosystem stablecoin.
- The initial $1 billion worth of BTC acquired by LFG was facilitated by a prominent cryptocurrency prime broker, Genesis, through an OTC swap of UST Stablecoin for BTC.
- This OTC transaction was the first of its kind at the achieved magnitude. As previously mentioned, the remaining $500 million was obtained through Three Arrows Capital (3AC).
- With the bitcoin reserves of LFG totalling 80,394 BTC valued at over $3.1 billion, this purchase places the foundation among the top 10 bitcoin holders in the world.
What they are saying
Do Kwon, LFG Governing Council member and Co-Founder and CEO of Terraform Labs, stated, “The 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.”
Joshua Lim, head of derivatives at Genesis stated, “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.”