Written by Robert Steinadler 19 days ago

Luna Foundation Guard adds another 37,863 Bitcoin to its reserve

There are only two entities that keep on buying Bitcoin no matter what the price or the market conditions. The first one is MicroStrategy and the second one is the Luna Foundation Guard. The organization ensures that TerraUSD (UST) has additional collateral as a backup in case UST should face hard times.

How much BTC did the LFG buy this time and what were the conditions of the latest Bitcoin deal that the foundation has struck?

LFG swapped UST for BTC

It is notable that the Luna Foundation Guard swapped $1 billion UST for BTC with Genesis Trading and bought another batch of Bitcoin worth $500 million from Three Arrows Capital. This isn’t the first deal between the parties involved and proofs again that UST is indeed a trusted medium of exchange rather than US-Dollars or other stablecoins.

The foundation’s Bitcoin reserve holds a total of 80,394 BTC which is worth $2,9 billion at the time of writing. The LFG is effectively one of the few entities that are known to the public to hold a significant amount of Bitcoin. Its treasury is only outmatched by MicroStrategy and closely followed by Tesla, which bought Bitcoin last year.

Even in the face of the recent decline in price, the LFG is showing the determination that only Bitcoin is a reliable backup in case of unforeseen events. TerraUSD is an algorithmic stablecoin that is not backed by dollar-denominated collateral and the Bitcoin reserve is meant to support the peg of UST.

TerraUSD and Anchor become more attractive

With the recent hike in the interest rate, the crypto market took a hit again. This makes TerraUSD a viable alternative for investors who are looking to short the market and earn a substantial annual percentage yield.

The Anchor Protocol promises 18 % APY to investors if they invest their UST with Anchor. This not only beats inflation in the US and Europe but also provides stability while the market could get more volatile. In the meantime, Terra aims to establish UST as the number 1 stablecoin solution on the market.

According to CoinMarketCap both LUNA and UST are ranking among the top 10 cryptos. At the same time, USDT and USDC are remaining in a better position and it seems that they are not losing market share anytime soon.

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