- "Ahhh... So there are some who still pay me homage. What were you praying for? Long life? Wealth, like so many of your kind? Whichever it was, you came to the right place. A dealer in life and power... That was me, once. Alas my life-for-money bargains didn't sit well with the Goddess Hylia. She trapped me in this stone statue long, long ago. The villagers here call me the Horned Statue and don't even bother to wipe away the bird droppings. One would think years upon years of such treatment would have made me mend my ways... One would think wrongly. I have only been biding my time for the moment someone who can hear me appears. Someone such as you. But I've said enough. Now then, shall we strike a bargain?"
- — Horned Statue
The Horned Statue was originally an unnamed Demon to whom people once prayed and made Faustian deals in order to obtain long life or wealth. This did not sit well with the Goddess Hylia who trapped it in the Horned Statue as punishment. Hateno Village was built near where it rested and the people began calling it the Horned Statue, although they generally ignored it to the point they would not even bother wiping away the bird droppings. However, despite years of mistreatment, the Demon refused to mend its ways and waited patiently for someone who could hear it and thus strike a bargain with it.
A young boy named Teebo found the statue and later showed it to the current incarnation of Hylia's chosen hero, Link. Mistaking it for one of Hylia's Goddess Statues, Link prays before it. The statue assumes that he was paying homage to it and is surprised when Link could actually hear it. The demon tells Link about its past and attempts to strike a bargain, but Link refuses. It thus steals one of Link's Heart Containers or Stamina Vessels (which it refers to as "Essence") without leaving a mark.
This unlocks the side quest "The Statue's Bargain" where Link tries to get it to return the stolen essence. When Link demands, the Statue explains that he only wishes to create a long and profitable relationship with him and offers to provide him with a service. It consists of taking a Heart Container or Stamina Vessel and then for the profit of 20 Rupees, trading it for the other, Link can thus trade a Stamina Vessel for a Heart Container or vice versa. This allows Link to change his mind on how he invests his Spirit Orbs.
Link can choose any option to complete the side quest which unlocks the Horned Statue's exchange service. The statue will buy either essence for 100 Rupees and sell the essence of Link's choice to him for 120 Rupees. Though Link is suspicious of his motives, the Horned Statue explains that Money and Life are all as one to it revealing that it is only interested in doing business with him. The trading service can allow Link to swap one essence for another in situations where he may require more Heart Containers than Stamina Vessels such as obtaining the 13 hearts for pulling out the Master Sword from its pedestal to complete the quest "The Hero's Sword".