Terra has made a lot of noise in recent weeks, both inside and outside the crypto community. It did so thanks to large-scale rounds of bitcoin purchases, which happened rather quickly. Specifically, the first entry on the company’s address was recorded on 21 January 2022, while the last transaction took place today.

As of today, the fund has 35767.98 bitcoins on its balance sheet, which is the equivalent of 1.6 billion dollars. Given the previously announced target of $10 billion invested, it can be assumed that the giant will increase this volume of coins by at least another six times.

That said, the company has already made an unrealised profit of $95 million thanks to the BTC exchange rate change, which means that so far the investment seems to be more than successful.

By the way, Do Kwon has reacted to the deal. As he noted on his Twitter, today he watered the flowers, wrote a couple of emails, bought $230 million worth of bitcoins, vacuumed the house and ate McDonald’s food.

Today I:

– 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

As a result, the head of the company commented on the choice for the top cryptocurrency in terms of capitalisation.

Why choose Bitcoin

As we noted above, Terra’s non-profit Luna Foundation Guard (LFG) currently has reserves of 35,767 BTC and is set to grow to the equivalent of $10 billion. Kwon himself said that as the UST is released, Terra will continue to purchase bitcoins against all odds. Here’s his quote on the matter, cited by Cointelegraph.

It’s important to remember that this is not a spontaneous management decision to buy bitcoins. I have already donated money so that we can build these reserves on behalf of the community, and we plan to do so indefinitely. So the $3 billion in BTC that we are buying initially to create reserves will be followed by ongoing Bitcoin purchases through the UST senorage. Each time a UST is issued, new bitcoins will also go into reserves.

Anyone can “mine” a decentralised UST stabelcoin by burning another decentralised asset worth $1, Kwon explained. UST is the largest decentralised stablcoin with a market capitalisation of around $16.5 billion. By comparison, the capitalisation of Tether (USDT), the largest centralised stablcoin overall, is $82 billion.

Terraform Labs will thus become one of the “pillars” of a bullish trend in the market. As a reminder, MicroStrategy was previously engaged in a similar strategy, only it accumulated bitcoins not for collateral but as equity capital with the expectation that the BTC price will rise in the future. In addition, Tesla is investing heavily in crypto, and it has not yet sold most of the bitcoins it bought in early 2021.

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The love for cryptocurrencies and decentralisation technology has penetrated even the banking sector. The day before, Jamie Dimon, head of JPMorgan, stated the high potential of blockchain and decentralised finance in an address to the bank’s investors. Here’s his rejoinder, cited by Decrypt.

Decentralised finance and blockchain are real new technologies that can be deployed in both the public and private sector, with or without permission. JPMorgan is ‘at the forefront’ of these innovations. We use a blockchain network called Liink to enable banks to exchange complex information. We also use blockchain to move tokenised US dollar deposits using JPM Coin.

As a reminder, JPM Coin was created in February 2019 as a dollar-backed steblecoin for use by large businesses. But the Liink network was launched back in 2017 - more than 400 financial institutions have signed up to the system to date.

The CEO of JPMorgan added that the company recognises “many applications where blockchain can replace or improve contracts, data ownership and create other beneficial conditions for innovation. This is quite an interesting position – especially against the backdrop of Dimon’s quotes he voiced a few years ago. Recall that at the time, the head of the bank was highly critical of Bitcoin and predicted its complete collapse.


We believe that such deals on such a large scale are bound to improve Bitcoin's global reputation. After all, over the years of cryptocurrencies, bankers and officials have managed to indoctrinate people that coin volatility - that is, dramatic changes in their value - is a bad thing. But Terra, MicroStrategy, Tesla, and other giants investing billions in BTC are clearly changing that perception for the better.


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