06 Apr Terra Adds Another $230M Worth of Bitcoin as the BTC Price Dips to $44K
Terra continues on its BTC buying spree, adding another $230 million today as the bitcoin price dipped to $44,000. In doing so, the Do Kwon-led protocol outdid Michael Saylor’s move from yesterday.
Terra Buys $230 Million Worth of Bitcoin
The protocol behind the UST stablecoin just added another $230 million worth of BTC to its LFG wallet today – April 6th. At the time of this writing, the price is hovering above $45,000, having dipped to about $44K earlier in the morning.
Users can track the movement of the wallet here. All the transactions were carried out at an average price between $45,000 and $45,500. This puts the total wallet’s balance at $1.62 billion, containing a total of 35,767 BTC.
Do Kwon, the CEO and Founder of Terraform Labs, confirmed the buy on Twitter, albeit ever so casually:
– Watered my plants
– Wrote some emails
– Bought 230M in $BTC
– vacuumed the house
– had some mcdonalds
Now off to walk the dog
— Do Kwon (@stablekwon) April 6, 2022
Do Kwon on UST and Bitcoin Backing
Speaking to Bloomberg a couple of days back, Do Kwon revealed part of the reasons for Terra’s foray into bitcoin buying and why they chose BTC per se.
The important thing to remember about Terra is that it’s a decentralized stablecoin in a sense that it has no issuer. Any person can mint Terra stablecoins by burning a dollar worth of decentralized assets.
When asked why does he reveal the plans of buying BTC and essentially allowing potential frontrunners to prop the price up, he said that it was important to be entirely transparent to their community about the overall decision-making process.
Terra’s CEO also argued that it’s important to remember that this is not a “corporate treasury decision in the sense that I am not buying Bitcoin – I’ve already donated money so that we can build these reserves on behalf of the community.” He also said that once the initial bootstrap of $3 billion is through, they would continue buying more in a bid to strengthen their reserves.
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