Luna Foundation Bought $176M Bitcoin, $200M Avalanche Over The Weekend

The Luna Foundation Guard (LFG), an entity that supports the Terra LUNA/USD blockchain, acquired $176 million worth of Bitcoin BTC/USD on Sunday.

What Happened: On-chain data shows that the LFG transferred 4,130 BTC worth $176.1 million in a series of four transactions.

The entity now holds 39,897.98 BTC worth $1.7 billion at current prices.

LFG has been on a Bitcoin buying spree over the past few weeks with the goal of building reserves to convert its algorithmic stablecoin Terra USD UST/USD into one that is backed by Bitcoin.

On April 8, LFG moved to expand its stablecoin reserve beyond Bitcoin, by acquiring $200 million worth of Avalanche AVAX/USD tokens through an over-the-counter (OTC) trade with the Avalanche Foundation.

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“The LFG’s OTC deal to add $100 million of AVAX the UST Reserve makes AVAX the first major crypto-asset besides BTC to be added to the UST Reserve, marking the beginning of a diversified and non-correlated asset pool supporting the UST peg,” stated Terra on Twitter.

Terra also swapped $100 million LUNA for AVAX tokens in a separate Treasury Swap to “demonstrate its commitment to Avalanche.”

Price Action: According to data from Benzinga Pro, at the time of writing BTC was trading at $42,300, down 1.03% in the last 24 hours. LUNA was trading at $88, down 6.9% and AVAX was trading at $79, down 4.96% over the same period.