A while back Terra announced plans to buy $10 billion worth of Bitcoin to back up its stablecoin UST. It has been continuously purchasing Bitcoins for the same, and with its latest $1.5 billion purchase Terra now holds more Bitcoins than Tesla. This not only means fewer Bitcoins for all of us but is also great for the stablecoin UST.
Terra is the second-largest Bitcoin hodler among corporates
While we talk about Terra’s latest Bitcoin purchases, let us know in the comments who you think is the largest Bitcoin hodler among businesses. If you are active in this industry, this is a fairly easy question. Coming back to Terra, it now has 80,394 Bitcoins in reserves which is almost double of Tesla but is still much behind the top contender. It roughly translates to $2.9 billion worth of Bitcoin in the stablecoin reserves. Terra could also soon become the largest BTC holder considering the rate at which they are purchasing. Their accumulation began at the start of 2022 and they are already holding so many coins.
The price of BTC is in a downtrend now, so for Terra, it is a great time to fill up their reserves at cheap prices. Sooner or later we will see a rally or a jump which could result in UST’s market cap increase. While I don’t think it will be enough to make UST the largest stablecoin, it would very well take the 2nd position replacing USDC. More importantly with UST, there is no uncertainty factor regarding the reserves which is the case with USDT.
About Terra UST
Terra is a blockchain-based ecosystem that includes a native algorithmic stablecoin (UST) geared for real-world adoption as well as a native token (LUNA) that is used to maintain UST’s dollar peg. TerraUSD (or UST) is the third-largest stablecoin in terms of market capitalization, with a market cap of $18.7 billion. The main reason it has gained popularity is the rapid price increase of Luna which is Terra’s token. At the same time, the APR on UST on many platforms is really high at 18-20%. It also has low fees and offers instant settlement. Terra’s UST does show the potential of becoming the largest stabecoin.
What are your thoughts as Terra now holds more Bitcoins than Tesla? And do you think it will soon become the largest corporate BTC holder? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Valkyrie’s Bitcoin futures ETF is approved by the SEC.
