After 39 months of making consistent purchases, El Salvador has reached a milestone of 6,000 Bitcoins in its reserves.
This places the country sixth among the top government holders of Bitcoin globally, with its reserves now valued at approximately $570 million.
Much of this value was added this past year, as Bitcoin grew from $45,000 to over $100,000.
“Thank goodness, our country’s Bitcoin reserves are now worth 127% more than we paid for them — an increase of more than $344 million,” Bukele wrote.
Things could really start to accelerate next year, with other nations and states considering similar strategies.
Bitcoin adoption strategy
El Salvador’s acquisition strategy has revolved around a simple approach: buying one Bitcoin every day.
However, the country made a few larger-than-usual purchases recently, including an 11 Bitcoin buy on December 20 and again just two days later.
These coincided with reports of El Salvador securing a $1.4 billion loan agreement with the International Monetary Fund.
The IMF deal required the country to make Bitcoin acceptance by businesses voluntary rather than mandatory.
This adjustment was intended to address the IMF’s concerns about potential financial risks tied to Bitcoin adoption.
Global race
Galaxy Research predicts that by 2025, at least five nation-states will add Bitcoin to their reserves, driven by motivations like diversification, trade settlement, and strategic competition.
President-elect Donald Trump has floated the idea of creating a national Bitcoin reserve, though analysts suggest the US may start by utilising Bitcoin already held through law enforcement seizures.
Meanwhile, states like Florida and Pennsylvania are also exploring building their own strategic Bitcoin reserves.
Crypto market movers
Bitcoin is up 0.7% over the past 24 hours to reach $94,970.
Ethereum gained 1.5% over the same period to $3,390.
What we are reading
How Bitcoin predictions from Cathie Wood, Mike Novogratz, and Michael Saylor played out in 2024 — DL News
1.6 Trillion BONK Tokens Worth $53.5 Million to Be Burned as Part of BURNmas — Unchained
Bitcoin Kimchi Premium Spikes as South Korea’s Political Turmoil Escalates — CoinDesk
Terra’s Do Kwon to be sent to US to face trial on fraud charges, minister says — DL News
Volatility Shares files for Solana futures ETF, despite lack of Sol futures products — The Block
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
