Terra-supported organization LFG buys an additional 30,000 Bitcoins, nearing a position double that of Tesla. Estimated cost of their Bitcoin acquisition.
Terra-backed organization LFG announced another OTC trade to increase its Bitcoin holdings by 37,863 BTC, bringing its total Bitcoin reserves to 80,394, nearly double that of publicly listed companies, second only to MicroStrategy's 129,218 BTC.
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Holding 80,394 BTC
According to a tweet from "LFG | Luna Foundation Guard," they have completed an over-the-counter transaction with Three Arrows Capital through the encrypted trading platform Genesis, totaling approximately $1.5 billion and 37,863 bitcoins.
1/ The LFG has acquired an additional 37,863 Bitcoins totaling ~$1.5 billion in OTC swaps with @GenesisTrading and 3AC. https://t.co/Ezzfwl7VFn
— LFG | Luna Foundation Guard (@LFG_org) May 5, 2022
This OTC transaction includes LFG exchanging $1 billion UST for $1 billion worth of bitcoin with Genesis, and LFG also purchased $500 million worth of bitcoin with the assistance of Three Arrows Capital's 3AC.
The collaboration with Three Arrows Capital has sparked further discussions, with the community questioning whether 3AC is unloading $500 million worth of bitcoin. Terra founder Do Kwon stepped forward to explain:
They did not sell us $500 million BTC, but we made purchases through a Time-Weighted Average Price (TWAP) strategy. 3AC is better at judging entry points than us.
Following this acquisition, LFG's bitcoin reserve now stands at 80,394 coins. The newly acquired bitcoins have not yet been included in LFG's address, but this will make them one of the top ten bitcoin holders.
LFG Foreign Exchange Reserves
According to LFG's Foreign Exchange Reserves data, the latest total assets of $3.218 billion are distributed as follows:
- BTC: 80,394, $2.919 billion
- LUNA: 169.13 thousand, $13.5 million
- AVAX: 197.36 thousand, $11.4 million
- USDT: 26.2817 million
- USDC: 23.5556 million
Based on historical bitcoin purchase data from LFG, as they have never disclosed the purchase cost, if we calculate based on the price on the day the bitcoin was credited to the LFG address, the average purchase price of bitcoin is approximately $41,812, with a cost of around $3.1 billion, putting them in a current unrealized loss position.
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