Terra has once again purchased a significant sum of Bitcoin as BTC slips below $44,000. The blockchain platform, which is home to LUNA and Terra UST, has today purchased 5,040 BTC, worth $227 million at acquisition time. Terra now holds 35,768 BTC, worth circa $1.6 billion.
In the last 24 hours, the crypto market has seen $452M in liquidations – 147,750 crypto traders have been liquidated with the largest single liquidation happening on OKX according to Coinglass.
Bitcoin ownership race heightens for Terra and MicroStrategy
The purchase is one amongst many that the LUNA Foundation Guard (LFG) has made in recent times. Terra notably began buying Bitcoins from the 22nd of March to the 25th of March. The foundation also snapped $160 million worth of Bitcoin on the 26th of March.
The ongoing Bitcoin buying spree is associated with Terra’s plans to build up its reserve for its Terra UST stablecoin. Terra UST is a decentralized stablecoin that runs on the Terra blockchain. As of today, the stablecoin’s overall market value sits above $16.7 billion.
CEO of Terraform Labs, Do Kwon had previously revealed that the Terra foundation plans to bring its Bitcoin purchases to $10 billion. After securing $1 billion worth of Bitcoin through over-the-counter sales, it increased its reserve to $3 billion.
Bitcoin continues to gain ground amongst institutional players
Like Terra, MicroStrategy has a notable history of buying Bitcoin for its company’s reserves. Per its 5th SEC filing, MacroStrategy —the firm’s subsidiary — purchased 4,167 Bitcoins (worth $190.5 million at purchase time).
Weiss Crypto Ratings, a crypto analytics platform, notes the significance of the purchase, saying;
“Institutional accumulation of this magnitude can be a significant factor leading to a supply squeeze – a shortage that will push #BTC prices significantly higher.”
Both MicroStrategy and its subsidiary now hold an estimated 129,218 Bitcoins, which is currently worth around $5.7 billion. In comparison to Terra, MicroStrategy is the larger Bitcoin holder.
It is also important to note that both organizations are holding Bitcoins for different reasons. MicroStrategy’s CEO Michael Saylor, who was previously a staunch Bitcoin critic, had made a leap into the crypto market in August of 2020.
Saylor has since become a significant Bitcoin proponent and has continued to show support for Bitcoin. Recently, he explained that Bitcoin was a better investment for his firm than gold would’ve been.