Terra is not at all concerned about the crypto crash. It instead bought an additional $100 million worth bitcoin to replenish its reserves.
Earlier this year, Do Kwon – Founder and CEO of Terraform Labs – revealed the company’s intentions to introduce a stablecoin (UST), which will be backed by bitcoin reserves worth in total of $10 billion instead of fiat currency.
The protocol would eventually accumulate significant assets, according to the top executive. Terra started its buying spree immediately after. The first two transactions happened in March – both for approximately 1,500 BTC.
Shortly thereafter, 2,943 BTC were purchased by the project in one transaction. This transaction was worth approximately $140 Million at the time of settlement.
It continued to accumulate more bitcoin in April. The protocol bought $230,000,000 in BTC at the beginning of April. A few days later the Luna Foundation Guard (LFG pool) purchased an additional $176 in primary cryptocurrency.
Over the last several days, bitcoin’s price went on a downtrend. It fell to below $40,000 in the last few days, which is its lowest level since March. But that has not stopped Terra.
Do Kwon announced earlier on April 13 that Luna Foundation Guard bought $100 million of bitcoin to supplement its UST reserves.
Current balance avail here: https://t.co/UNmWPOq7Vh
— Do Kwon 🌕 (@stablekwon) April 13, 2022
The latest transaction has resulted in the protocol holding 42,406.92 BTC. This is more than $1.7 billion, if you take current prices.