After announcing intentions to issue a stablecoin backed by bitcoin reserves with a total value of $10 billion, the Terra crypto project has already started accumulating bitcoin.

The latest purchase came earlier yesterday, with the project buying 2,943 bitcoins worth roughly $140 million.

Recently, Terraform Labs CEO Do Kwon revealed his plans to issue a stablecoin (UST) that will be backed by bitcoin reserves instead of dollars, euros or any other fiat currency, which is the usual method in most previous projects.

His announcement sent shockwaves through the cryptocurrency community, with many, like Blockstream CEO Adam Buck, wondering where he would buy bitcoins from.

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Do Kwon explained that the project will raise $10 billion in time, but it currently has $3 billion ready to buy bitcoin.

Soon, Project Terra has already started buying bitcoins, which shows the project’s bitcoin address.

The first two purchases came on March 22nd, and both transactions held 1,500 bitcoins.

The address continued to pile up in bitcoin, and the largest transaction took place earlier yesterday with 2,943 bitcoins bought, worth just under $140 million at today’s prices.

The wallet shows that Terra’s total bitcoin reserves have now exceeded 30,000 bitcoins, worth nearly $1.5 billion.

“Do Kwon” explained in a recent interview withBloomberg“:

The reason we are particularly interested in Bitcoin is that we believe it is the most powerful digital reserve asset.

UST will be the first online stable digital currency to implement the bitcoin standard as part of its monetary policy.

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