Preview
29 Mar 2022
Luna’s BTC reserves reach 27,785 BTC, and they are far from done acquiring bitcoin
Luna Foundation Guard has now built BTC reserves of 27,785 BTC after adding 18,221 BTC over the last week.
The Luna Foundation Guard (LFG) has launched its BTC reserves to enhance the robustness of UST.
LFG initially announced a raise of $1bn in February and has since last Monday begun accumulating bitcoin with funds raised from burning Luna to mint UST. Initially, LFG seeks to spend $3bn on building its BTC reserves. The confirmed BTC address held 9,564 BTC from late January before starting to acquire more BTC last week. The announced raise likely occurred in late January, being raised in part in BTC and in part in USDC.Last week, LFG sent 125m worth of USDT across all weekdays and 160m on Saturday to Jump Trading, who executed the BTC trades quickly thereafter.Source: DeBank, Bitaps
44% of the original stablecoin reserves on LFG’s wallet intended for building the BTC reserves has been deployed in the last eight days. The fund now holds $988m worth of stablecoins, with a potential further $800m to be raised by converting UST to USDT.If LFG continues to buy at a similar rate as last week and the $800m is not converted, LFG will finalize building the BTC reserve on April 6th. Assuming a stable BTC price of $47,000 until April 6th, LFG will have 48,800 BTC in its reserve once finished. If LFG also spend its $800m UST reserves on BTC, this process will be finalized around April 14th, with a further *~17,000 BTC being added to the reserve, leading the reserves to reach 65,000 BTC, assuming LFG continues buying at a rate similar to last week.
This massive BTC accumulation is likely contributing to lifting the market and should be monitored closely once it nears its end. Pay attention to the ETH address and BTC reserve address.
As of Tuesday March 29th, 14:30, there has been no activity in the LFG wallets on March 29th. This might suggest that LFG is not maintaining its buying routine from week one, which might be caused by LFG awaiting more attractive entries in bitcoin.