Technology

Luna Foundation claims to have bought 37,000 more bitcoins

Key facts:
  • The Luna Foundation, the Genesis broker and 3AC would have participated in the recent purchase.

  • Luna surpasses Tesla and becomes the second institutional investor with the most bitcoin.

The Luna Foundation, responsible for the development of the homonymous network and the US terra (UST) stablecoin, reports having bought 37,863 bitcoin (BTC), equivalent to about USD 1,500 million.

This figure positions the organization among the 10 largest holders of bitcoin. Regarding institutional adoption, Fundación Luna, with 80,393 BTC, becomes the second largest investor in bitcoin and surpasses Tesla, Elon Musk’s company, which “only” accumulates 43,200 BTC.

A press release was the means used by the Foundation to announce the purchase. There it is detailed that the exchange was carried out in coordination with the Genesis broker . Part of the purchase was paid with 1 billion of the UST stablecoin. The rest ($500 million) was purchased through the hedge fund Three Arrows Capital, or 3AC.

Until the moment of the publication of this note, the movement of is not reflected in the balance of holdings presented by the Luna Foundation on its website, nor in the Bitcoin address identified with the organization.

It is worth remembering that, as CriptoNoticias has reported, the South Korean Do Kwon (CEO of Fundación Luna and creator of the Terra network) wants to make his organization the largest bitcoin holder in the world.

The reason for doing so, he explains, is support your development with the most valued cryptocurrency in the market. However, this does not mean – as has sometimes been wrongly claimed – that the UST stablecoin is backed by bitcoin. This is an algorithmic currency that maintains its peg to the US dollar by burning or issuing the terra (LUNA) cryptocurrency.

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There is “growing demand for decentralized stablecoins”

In relation to the recent acquisition of bitcoin, Do Kwon has mentioned that “The mission of the Luna Foundation is to support the stability and adoption of the UST stablecoin”. According to the entrepreneur, “the latest bitcoin acquisition deal with Genesis for the UST reserve” is “a sign of the growing demand for decentralized stablecoins in the cryptocurrency market.”

“This helps build bridges between cryptocurrency communities united by a common decentralized money.”

Do Kwon, CEO of Fundación Luna and creator of the Terra network.

Joshua Li, head of Derivatives at the Genesis exchange, also commented on the fact: “The remarkable growth of Terra has continuously reshaped the cryptocurrency markets in the last two years. (…) Genesis is excited to be a liquidity partner for the Terra ecosystem, connecting it with a broader audience of institutional market participants.”

From what is reported here, two unknowns emerge. The first of them is about the fate of the bitcoins that the Luna Foundation claims to have acquired. They have not reported whether they are kept in a custody service or whether they created a different address than the one they have always used. Also striking is the fact that the organization’s balance sheet is not updated with the new acquisition. Nor have they indicated in the statement how was the issuance of the UST used to make that part of the purchase.

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