This week there’s been a lot of talk about Terra’s Luna Foundation purchasing bitcoin to hold in its reserves pool. Onchain data shows the organization’s wallet has transferred at least three tranches of tether worth $125 million each. Furthermore, reports show that the Luna Foundation has confirmed the recent bitcoin purchases.
Onchain Data Indicates Terra’s Luna Foundation Has Sent 3 Tranches of Tether to Purchase Bitcoin, Foundation Confirms Bitcoin Address
Two days ago, Bitcoin.com News reported on Terra’s founder Do Kwon discussing how he looks forward to building with bitcoin. In the report, accounts and onchain data showed that $125 million in tether (USDT) was transferred from a wallet that reportedly stems from Terra’s Luna Foundation.
The wallet is a Gnosis safe address and it holds $1.39 billion in ERC20-based stablecoins like tether (USDT) and usd coin (USDC). After the first transfer of $125 million in tether two days ago, there’s been two more transactions of the same amount. On March 23, $125 million in tether was moved and then the following day $124.9 million in USDT was transferred.
While speculation over the purchases has been circulating wildly on social media and forums, Bitcoin Magazine’s official Twitter account tweeted on March 23: “Luna Foundation confirms 6,000 bitcoin purchase worth $250 million to back its UST stablecoin.”
Additionally, the Twitter account left a Blockchair explorer PDF document that shows the Luna Foundation’s BTC address. The Twitter account further added that “the 5,934 bitcoin – purchased today and yesterday – will be wrapped on Cosmos and deposited in smart contracts supporting the algorithmic stablecoin.”
Blockchair’s blockchain explorer shows the wallet currently holds 18,423 BTC worth $788.5 million. The last transaction it received was for 440 BTC, but it’s also received transactions of around 1,499, 999, 469, 498, 499, 500, and 501 BTC first received on March 23, 2022.
The transactions were sent with no privacy tactics as Blockchair’s privacy-o-meter tool gives most of the transactions a privacy score of “critical” or 0. The last transaction stemming from the wallet had three critical issues tied to the privacy of the transaction and one privacy vulnerability was “matched addresses.”
At the time of writing, the Terra-owned Gnosis safe address still has $999.35 million worth of tether (USDT) and $397.23 million worth of usd coin (USDC).
What do you think about the reports and data showing Terra’s Luna Foundation purchasing large amounts of bitcoin for reserves? Let us know what you think about this subject in the comments section below.