Price action is struggling, giving Terra and Do Kwon the perfect opportunity to “buy the dip.”
Terra, the Blockchain outfit using Bitcoin (BTC) to back its new US dollar stablecoin, has bought over 5,000 BTC.
Wallet data confirms that on April 6, Terra added another 5,040 BTC to its balance, which now totals 35,768 BTC.
Terra buys the dip… again
The move comes after a multi-day lull in buying activity by the Blockchain protocol.
This week, co-founder Do Kwon nonetheless told Twitter followers that the scheme was “just getting started,” while a mainstream media interview set out plans for “perpetual” BTC buys.
Terra, Kwon explained, wants to build a “decentralized Forex reserve” with Bitcoin as its collateral. The stablecoin, TerraUSD (UST), will have both BTC and Terra’s native LUNA token as its backing.
Initially planned to include $3 billion in Bitcoin reserves, that number will expand to $10 billion, Kwon said last month, with additional BTC purchases thereafter depending on how much UST is minted.
– 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
The nonprofit organization attached to Terra, the Luna Foundation Guard (LFG), is the entity attached to the BTC wallet involved in collateralizing UST. The latest addition means that it remains the 29th largest BTC wallet.
LFG Bitcoin wallet (screenshot). Source: BitInfoCharts
While Kwon told the media that such large buy-ins were “not a corporate treasury decision,” the LFG wallet balance is already on the way to competing with the largest such treasury, that of MicroStrategy. The latter also added to its BTC reserves this week, buying around 4,000 coins for a total of 129,218 BTC.
For comparison, should Terra complete the remainder of its $10 billion allocation at the current BTC/USD spot price of $45,270, it would be able to purchase approximately another 184,800 BTC.
Kwon, in turn, is already tipped to become the world’s biggest Bitcoin whale.
Spot price shrugs off a tired narrative
Bitcoin price action, meanwhile, has failed to continue reacting to largescale commitments either from Terra or MicroStrategy.
After failing to crack the 200-day moving average near $48,000, BTC/USD dipped overnight to also threaten a loss of the newly-breached yearly opening price of $46,200, data from Cointelegraph Markets Pro and TradingView shows.
Such a loss could mean the return of the trading range in which it lingered throughout 2022 until last week’s breakout.
Nonetheless, reactions to Kwon remained positive.
“Luna StableKwon just added about 4000 BTC to stack. This will eventually have the effect of a halving,” popular Twitter account @CivEkonom argued.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
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