Terra wants to cement its place as one of the largest BTC holders in the world. CEO Do Kwon stated that the organization has a budget of $10 billion to make the splurge.
Terra has spent $1.4 billion on Bitcoin, making it the 30th largest single holder of the cryptocurrency. The current acquisition brings the company’s total holdings to 30,727 bitcoins, with greater purchases on the way.
Do Kwon, the Terra Protocol’s founder, stated that the Terra Protocol will be one of the major holders of $BTC.
Following its recent acquisition of 4167 BTC disclosed today, Michael Saylor’s MicroStrategy is one of the largest BTC whales, with approximately 129,218 BTC in its cache. MicroStrategy’s bitcoin holdings are currently worth roughly $5.9 billion.
Kwon’s motivation for purchasing a huge amount of BTC was revealed in a Twitter space sponsored by Udi Wertheimer. Kwon claimed in the space that the decentralized stablecoin UST will be transformed into a hybrid stablecoin, allowing users to swap $1 worth of UST for $0.99 worth of BTC.
Because of the trust that Bitcoin has built over the years, it was an easy decision for Kwon. He went on to say that “it is really tough for someone in crypto to dispute Bitcoin.” According to the founder, the company has set aside $3 billion to purchase BTC in the short term, with the Luna Foundation Guard (LFG) planning to spend up to $7 billion on Bitcoin purchases in the future.
Terra has risen by a staggering 6.50 percent in response to the thriving ecosystem, and is now trading near the $120 mark. The asset reached an all-time high of $199 and has since seen a surge in activity as transaction volumes increased.
Terra’s founder has been an outspoken supporter of Bitcoin, thus the company’s current move comes as no surprise to industry observers. He once remarked, “$UST with $10 billion in $BTC reserves will usher in a new monetary age of the Bitcoin standard.” P2P electronic currency that is simpler to spend and more appealing to keep.”
Terra now allows UST to be traded for BTC natively without the use of middlemen by converting it to a hybrid stablecoin. Conversion costs are low, with 10,000 UST costing roughly $2.58 when converted to BTC.