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 5, 2022 at 5:30 p.m. UTC

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

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.

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

CoinDesk - Unknown

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

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