Terra (LUNA) Buys Bitcoin Again When The Crypto Market Drops

Terra LUNA buys additional Bitcoin before the launch of the UST stablecoin. (Bitnovo)

JAKARTA – Terra (LUNA) has reportedly bought up Bitcoin worth 100 million US dollars. This Dbitcoin will be used as a supporter of the UST stablecoin that will be launched by Terraform Labs.

Previously, Terraform Labs Founder and CEO Do Kwon revealed the company's intention to introduce a stablecoin (UST), which will be backed by a total bitcoin reserve of $10 billion, not fiat currency as reported by CryptoPotato.

The company executive confirmed that the protocol will accumulate a large amount of assets in due course. Shortly after, Terra resumed his purchases. The first two transactions took place in March – both around 1,500 BTC. It didn't stop there, Terra again bought up 2,943 BTC in one transaction, worth around $140 million at the time of settlement.

In April this Terra continued to add to its Bitcoin coffers. At the beginning of this month alone Terra bought Bitcoin worth 230 million US dollars. A few days later, Luna Foundation Guard (LFG) purchased additional BTC worth 176 million US dollars.

Over the past few days, the price of Bitcoin has been on a downward trend. Additionally, the price fell below $40,000, down to its lowest level since March, but that didn't deter Terra from buying as much BTC as possible.

Earlier on April 13, Do Kwon revealed that Luna Foundation Guard purchased $100 million worth of bitcoins for his UST reserves. Currently Terra holds 42,406.92 BTC. Based on current prices, the amount is worth more than 1.7 billion US dollars.