The company added another $230 million to its treasury today after the price of Bitcoin dropped to $44,000.
In doing so, the protocol led by Do Kwon outperformed the Michael Saylor purchase also announced yesterday related to the purchase of more Bitcoin as well.
Terra Buys $230 Million Bitcoin
The protocol behind the digital stablecoin UST added $230 million worth of bitcoin to its “LFG” wallet today, April 6.
At the time of writing this article, Bitcoin price is hovering near the $45,000 level, after the price dropped to around $44,000 earlier this morning.
The movement of Terra's portfolio can be tracked here.
All transactions were executed at an average price between $45,000 and $45,500.
This brings the total wallet balance to $1.62 billion, which contains a total of 35,767 bitcoins.
Speaking to Bloomberg two days ago, Do Kwon revealed why Terra went into buying bitcoin and why they chose bitcoin as such.
The important thing to remember about the digital stablecoin behind Terra is that it is a decentralized stablecoin in the sense that it does not have an issuer.
Anyone can mint Terra stablecoins by burning a dollar worth of decentralized assets.
When asked why he discloses plans to buy bitcoin and essentially allow potential contestants to support the price, he said it is important to be completely transparent to the community about the overall decision-making process.
The CEO of “Terra” added that this was not the decision of the company’s treasury and added, explaining:
I don't buy bitcoins for myself, I've already donated money so we can build these reserves on behalf of the community.
Once the initial $3 billion boot-up is completed, we will continue to buy more in an effort to bolster this reserve.
Posted using Proof of Brain