El Salvador, the pioneering nation in adopting Bitcoin as legal tender, continues to bolster its cryptocurrency reserves. Recent data from blockchain analytics platform Arkham Intelligence reveals that the Salvadoran government has been steadily purchasing one Bitcoin (BTC) daily since March 16, 2024, accumulating an additional 162 BTC.
With these ongoing acquisitions, El Salvador’s total Bitcoin holdings now stand at 5,851 BTC, valued at approximately $356.4 million at current market prices. President Nayib Bukele, a vocal advocate for Bitcoin, has highlighted the cryptocurrency’s potential to drive economic independence and innovation within the country.
The strategy of daily Bitcoin purchases was initiated with a significant transfer of 5,689 BTC into a cold storage wallet on March 16, 2024, which Bukele described as creating the country’s first “Bitcoin piggy bank.” This approach underscores a commitment to securely managing the nation’s Bitcoin assets while aiming for long-term financial gains.
The Salvadoran government’s aggressive Bitcoin accumulation has drawn mixed reactions globally. Proponents view Bukele’s strategy as a bold move toward financial sovereignty, especially in a country that has historically faced economic challenges. Crypto analyst EmberCN pointed out that the government currently enjoys a floating profit of around $93.45 million, with an average purchase price of approximately $44,835 per Bitcoin, suggesting short-term validation of Bukele’s approach.
To address concerns about transparency, the Salvadoran government has introduced measures to allow public auditing of its Bitcoin holdings, aiming to build trust and ensure accountability in the management of public funds related to cryptocurrency investments.
Beyond direct purchases, El Salvador has also invested in Bitcoin mining, utilizing the country’s abundant geothermal energy from volcanic sources. Since 2021, the nation has mined 474 Bitcoin, valued at around $29 million, further enhancing its cryptocurrency reserves. This environmentally sustainable approach aligns with Bukele’s vision of integrating advanced technology with natural resources to drive economic growth.
