Luna Foundation Guard Acquires $1.5B in Bitcoin to Reinforce Stablecoin Reserves

The purchase brings LFG's holdings to more than 80,000 bitcoins, or nearly $3 billion.

AccessTimeIconMay 5, 2022 at 4:40 p.m. UTC
Updated May 11, 2023 at 5:41 p.m. UTC

The Luna Foundation Guard (LFG) has acquired 37,863 bitcoins as it continues to move toward its target of having $10 billion of stablecoin reserves before the end of the third quarter.

  • The purchases were made in the form of two over-the-counter deals, one a $1 billion swap of US Terra (UST) for bitcoin (BTC) with crypto prime broker Genesis Global Trading and the other a $500 million purchase of bitcoin from hedge fund Three Arrows Capital, according to a tweet on Thursday. Genesis is owned by Digital Currency Group, which is also CoinDesk's parent company.
  • LFG's total bitcoin holdings now stand at 80,394, worth just shy of $3 billion at press time. UST is the 10th-largest cryptocurrency with a market capitalization of $18.4 billion, according to CoinGecko.
  • “For the first time, you’re starting to see a pegged currency that is attempting to observe the Bitcoin standard,” said Do Kwon, co-founder and CEO of Terraform Labs, which is the development team behind the terra token. “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.”
  • Luna, the governance token of the Terra blockchain, was down by 4.8% on Thursday amid a market-wide sell-off that knocked $1.3 billion off its market cap. Bitcoin is lower as well, making LFG's $1.5 billion purchase now worth $1.4 billion.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Read more about