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LFG continues to buy Bitcoin, holds nearly 40,000 BTC

The Luna Foundation Guard (LFG), which backs the TerraUSD algorithmic stablecoin, added $173 million worth of bitcoin to its wallet last weekend through a series of purchases.

LFG currently has 39,897.98 bitcoins in its wallet, worth about $1.67 billion.

Over the past week, LFG has made a series of digital asset purchases:

  • 230 million USD $BTC on April 6
  • $200 million $AVAX on April 8.

Earlier in February, Luna Foundation Guard (LFG) raised $1 billion through an OTC sale of $LUNA.

This is one of the largest fundraising in crypto history, led by Jump Crypto and Three Arrows Capital, with Republic Capital, GSR, Tribe Capital, DeFiance Capital and other unnamed investors participating.

Proceeds from the sale of 1 billion USD of LUNA will go towards establishing a bitcoin foreign exchange reserve for UST, Terra’s largest stablecoin.

UST is an algorithmically stable coin that has gained popularity in the DeFi ecosystem. Tied to the price of the USD, which now has a market capitalization of more than $12 billion, the number has more than tripled since last November.

LFG believes that the reserve created through the $1 billion capital injection will effectively act as a “flush valve” for the acquisition of UST; it is designed to ensure that the price of the stablecoin remains fixed to the price of the dollar during sharp sell-offs in the crypto market.