Terra Founder Don Kwon has been busy with the Terra project lately. He was speaking about Bitcoin (BTC) and the impact of its price on TerraUSD (UST) during an interview on the Unchanged podcast.
Kwon admitted that a crash in the price of BTC could harm the stability of UST. He, however, pointed out that he has strong confidence in the long-term growth of Bitcoin, which will be a good thing for the Terra project.
Kwon Trusts In The Long-Term Growth Of Bitcoin
Kwon noted that although Bitcoin may have short-term volatility, he is banking on the long-term gains of the cryptocurrency. As a result, he isn’t worried about the short-term volatility of Bitcoin.
Terra has increased its Bitcoin holdings to $1.45 billion after purchasing 2,943 BTC a few days ago. The company wants to add more Bitcoin to Terra’s treasury as 40% of the collateral for USR. Following the acquisition of Bitcoins, Terra has now become the third-highest single-wallet BTC holder behind Tesla with $1.5 billion, and Micro Strategy with $5 billion worth of BRC.
Terra Aims To Become The Largest Single-Wallet BTC Holder
Crypto YouTuber danku_r pointed out that the addition of BTC to Terra’s treasury is a great move since it can cover up for the impact of an unexpected retraction in UST demand. He added that the decision could prevent or cushion a “death spiral due to market uncertainty” by swallowing the supply contraction of UST.
According to Kwon, one of the goals for the treasury is to ensure that it becomes the largest single-wallet holder of BTC. This will not be an easy feat to achieve, considering that it will need to dethrone Michael Sailor’s MicroStrategy from the top position. This means that Terra would need to acquire more than 125,051 BTC to make it possible.
Terra has already gone close to Tesla, but it may take a long time to shake off MicroStrategy, which is not looking to sell off its BTC holdings anytime soon.
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