On March 27, 2026, the TerraM token traded at $2.02, up 5.2% week over week. On-chain activity was limited during the period, with two buys and no sells. We’re genuinely excited to see the token break $2 again, though we expect continued volatility ahead.
During the week, we added additional TerraM liquidity to the Raydium pool, increasing the share of fully USDC-backed TerraM tokens to 3.35% of total supply. As a result, total market capitalization increased by approximately $1,000, reaching $20,240.
Our broader objective remains to expand liquidity coverage to 10%, with a near-term milestone of reaching 4%. While we initially expected to hit this target by the end of this month, it now appears it may take another month. With continued buybacks in place, we expect TerraM to reach the $2.2–$2.3 range during that timeframe, though some volatility should be expected.
Until liquidity deepens further, elevated slippage should be expected.
Ethereum strategy
Week over week, the Ethereum strategy dipped -0.21%. This has been a solid week for ETH overall. At one point, it traded around $2,200 before easing to $2,050 closer to the weekend, aligning well with our covered call strikes. This allowed us to roll positions forward at more favorable premiums than in previous weeks.
From the all-time high in September 2025, the fund is still down -68.38%. While YTD performance stands at -31.18%, just slightly underperforming ETH itself, which is down -30.62% over the same period.
Our short-term goal is to return the strategy to positive YTD performance; from there, the focus shifts to recovering and ultimately surpassing previous all-time highs. In an ideal scenario, the strategy should also outperform ETH itself.
During the week, the ETH Strategy generated $138 in options premiums, reducing our effective ETH break-even price to $1,524. By week’s end, the strategy held 2.025 ETH with an average acquisition price of $1,982.
Current options positions:
- 1.7 ETH APR 3, 2026 2,050 Covered Call
- 0.3 ETH APR 3, 2026 2,100 Covered Call
We rolled last week’s $2,050 covered call forward to next Friday, maintaining the same strike. With ETH trading around $2,060, this caps our upside, which we are fully comfortable with. Besides that we managed laddering our covered calls, having sold a smaller portion at a higher $2,100 strike.
Additionally, we eliminated tail risk by avoiding further put selling, which gives us more flexibility to maneuver going forward.
From the options premium received, we reduced margin debt to –$1,452. The immediate objective is to bring margin back to zero without selling any ETH.
At an average premium of $138 per week, it would take approximately 11 weeks to eliminate the remaining margin balance — around start of June.
Solana Strategy
The Solana strategy decreased by -1.37% week over week, with NAV dipping to $0.52. Most of the week was encouraging, with SOL at one point trading at $92.5, but on Friday it dipped below $86, pulling the fund’s NAV down by $0.01.
By the end of the week, we increased our long spot position to 56.80 SOL, with a buy price at $157.02 and break-even price of $140.36. With Solana trading at $86.01 at the time of writing, the position is still significantly underwater.
During the week, we collected $81.02 in option premium by rolling forward Mar 27 calls to April 24, 2026.
Because the position is currently underwater, our flexibility is limited. To generate meaningful premium, we had to sell calls below our average entry price, effectively capping part of the upside recovery.
Overall our Solana Strategy YTD performance is -30.48%, just slightly outperforming SOL itself, which is down -30.91% over the same period. At least now we are slightly outperforming SOL itself.
Bitcoin Strategy
This week we allocated 5% of the total options income from the Ethereum strategy to purchase spot BTC, increasing our holdings to 0.00024406 BTC.
It will take several months before this position becomes noticeable, but we like the start. After fourth week since the launch our Bitcoin strategy is down -1.7%, Given the fund’s size, the impact is negligible.
The Bottom Line
TerraM regained the $2 level with modest on-chain activity and gradual liquidity improvements, though depth remains limited and volatility likely. The Ethereum strategy is stabilizing, generating steady premium income and progressing toward margin neutrality despite still being deeply below ATH. Solana remains significantly underwater with constrained upside due to defensive positioning, while Bitcoin accumulation has begun but remains immaterial for now. Overall, the fund is still in recovery mode, with incremental improvements but no structural turnaround yet.