Terra Buys Another $140M Worth Bitcoin, Aims To Be 2nd Largest BTC Holder
Terra is keeping up with their series of bitcoin purchases by acquiring an additional $140 million worth of BTC.
Terra has begun accumulating Bitcoin, after it announced plans to release a stablecoin backed by BTC reserves worth in total of $10 billion. Their latest purchase was 2,943 bitcoins worth almost $140 million.
Earlier this month Do Kwon, the CEO of Terraform Labs, announced plans to release a stablecoin (UST) but backed by BTC reserves instead of the US dollar or any other fiat currency.
The Terra CEO explained that the plan is to accumulate $10 billion over time, but it currently has $3 billion prepared to start buying the leading crypto asset.
The first two purchases happened on March 22 – both around 1,500 bitcoins.
The latest addition to Terra’s reserve address was 2,943 BTC, worth just under $140 million at today’s prices, bringing the total balance to 30,728 bitcoins, worth around $1.45 billion at the time of writing.
Talking about the longer term goal, Kwon said that their aim is to become largest Bitcoin holder, after the account believed to belong to Bitcoin creator Satoshi Nakamoto.
Terra’s goal is to be the largest decentralized money in crypto, period. Its goal is not to be the largest stablecoin in the Terra blockchain, so we’re sort of expanding into let’s say the Solana ecosystem, Avalanche, Ethereum, Polygon. We plan to be everywhere where there are developers and users.
Now the thing is, different from growing stablecoin demand in the Terra ecosystem itself where trust in UST is extremely high – when you go to expand into these different ecosystems, then faith in LUNA’s collateral fitness is a lot less than what it is like in the Terra ecosystem.
But if you have Bitcoin as collateral, then nobody really questions it because it is the apex.
I think if we scaled out to $10 billion, the reason I want to get to $10 billion, is that besides Satoshi, we will be the largest single holder of Bitcoin in the world.”
At the time of writing, UST is ranked as the 14th largest crypto asset, with a market cap of $16.36 billion.
