El Salvador has reached a significant milestone in its cryptocurrency journey by amassing over 6,000 Bitcoin (BTC), now valued at approximately $569 million. This addition solidifies El Salvador’s position as one of the only six countries, alongside the United States, China, the United Kingdom, Ukraine, and Bhutan, to hold such substantial Bitcoin reserves.
The latest purchase of an additional Bitcoin on December 29 brings the total to 6,000.77 BTC, as tracked by The National Bitcoin Office of El Salvador. This acquisition has resulted in a 108.02% gain on their Bitcoin investment, with the average purchase price being around $45,450 per Bitcoin.
President Nayib Bukele’s government began its Bitcoin journey by purchasing 200 BTC on September 6, 2021, coinciding with the country’s trailblazing move to adopt Bitcoin as legal tender. Since then, El Salvador has consistently increased its holdings, occasionally buying significant amounts, such as $1 million worth following a $1.4 billion agreement with the International Monetary Fund (IMF), despite the IMF urging a reduction in Bitcoin activities.
Stacy Herbert, Director of El Salvador’s National Bitcoin Office, indicated the country might continue acquiring Bitcoin at an accelerated rate. A spokesperson reinforced that Bitcoin remains a central strategy for the country, with no plans to sell the holdings. However, El Salvador’s Chivo wallet, a state-operated Bitcoin wallet, may face changes, with expectations for private-sector Bitcoin wallets to become more prominent.
As the IMF’s approval for the financial deal is awaited, the conclusion of nearly four years of challenging negotiations due to Bukele’s Bitcoin policies may soon be in sight. These developments continue to place El Salvador at the forefront of integrating cryptocurrency into national financial strategies.
