- "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 who people once prayed too and made Faustian deals with in order to obtain things such as long life or wealth. This did not sit well with the Goddess Hylia who trapped it in the Horned Statue as punishment. Eventually Hateno Village was built near where it rested and the people began calling it the Horned Statue, though they generally ignored it to the point they wouldn't 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 here it speak to appear so it could strike a bargain with them.
Eventually a young boy named Teebo found the statue and later showed it to the current incarnation of Hylia's chosen hero, Link to it. Mistaking it for one of Hylia's Goddess Statues, Link pray before it causing it to assume he was paying homage to it and was surprised when Link could actually hear it speak. The demon tells Link about its past and attempts to strike a bargain but Link refuses, so it takes away one of Link's Heart Containers or Stamina Vessels (which it refers to as Essence) without leaving a mark.
This unlocks "The Statue's Bargain" side quest where Link tries to get it to return the essence it stole from him. When Link demands he return it, the Statue explains that he only wishes to create a long and profitable relationship with him and offers to provide him with a service that allows him to take a Heart Container or Stamina Vessel and then for the price of 20 Rupees, trade it for the other (for example Link can 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 either option to complete the side quest which unlocks the Horned Statue's Heart Container and Stamina Vessel exchange service which allows him to exchange one type of essence for another. The honed 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.