Do Kwon says Terra will buy Bitcoin forever; meanwhile MicroStrategy buys another $190m worth
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Terra blockchain founder Do Kwon has strongly reconfirmed his company’s plan to keep buying Bitcoin as a reserve asset. Meanwhile, not to be outdone, Bitcoin bull Michael Saylor’s firm buys a shedload more.
Kwon was interviewed by Bloomberg TV on Monday, and indicated that Terra’s BTC buying spree to back the firm’s stablecoin, TerraUSD (UST), would continue “in perpetuity”.
1/ If I was capable of moving #btc it would not be fit as a reserve asset
Fortunately Bitcoin is neutral, it cares not what I nor anyone else thinks, and it is mighty 💪 https://t.co/y8vQPDvSE2
— Do Kwon 🌕 (@stablekwon) March 30, 2022
Terra’s nonprofit Luna Foundation Guard (LFG) now reportedly has more than 30,000 BTC, which at current estimation is worth about US$1.4 billion. It’s well on its way to achieving its first-stated target of a US$3 billion reserve, which Kwon aims to eventually expand to US$10 billion.
Terra’s @stablekwon says his goal is to become the second largest holder of bitcoin behind Satoshi.
— Pomp 🌪 (@APompliano) March 30, 2022
But, judging by his latest comments, it seems Kwon and Terra aren’t going to stop there.
“One important thing to remember about what we’re [doing] here is that this is not a corporate treasury decision in the sense that I am not buying Bitcoin,” he told Bloomberg TV, adding:
“I‘ve already donated money so that we can build up these reserves on behalf of the community and we plan to be doing this in perpetuity…
“So the $3 billion or so that we‘re buying initially to bootstrap the reserves is going to be followed up by persistent buys of Bitcoin through UST seniorage… Every time UST is minted, there will be new Bitcoin that is added to the reserves.”
— The Crypto Monk (@thecryptomonk) April 4, 2022
Terra still has some way to go to catch up to business-intelligence software company MicroStrategy in the BTC-accumulation, “stacking Satoshis” race.
The Michael Saylor-led firm, through its “MacroStrategy” division, has today announced it’s made yet another large bunch of purchases of the OG asset – totalling another 4,167 BTC for about US$190.5 million.
Saylor has said on numerous occasions that MicroStrategy plans to hold the Bitcoin for the long term with no plans to sell.
MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per #bitcoin. As of 4/4/22 MicroStrategy #hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per bitcoin. $MSTRhttps://t.co/Z45OuJU5KI
— Michael Saylor⚡️ (@saylor) April 5, 2022
All this buying and reported bullishness today must be sending the Bitcoin price rocketing up, right?
Actually, it’s trading pretty flat again today at the time of writing (+0.06%), changing hands for about US$46.5k.
— Johnny (@CryptoGodJohn) April 5, 2022
It's binary at this point; Michael Saylor will either be the greatest or worst financial strategist in history.
I tend to think it will be the former 🙂
— Will Clemente (@WClementeIII) April 5, 2022