Since adopting Bitcoin as a legal tender back in 2021, El Salvador has pursued a consistent strategy of accumulating Bitcoin (BTC).
This steady Bitcoin buying strategy, which has largely paid off since the asset’s price has soared, has continued up until now. Recent data shows that El Salvador purchased another 1 BTC on Dec. 29, pushing the Nayib Bukele country’s total holdings above the 6,000 BTC mark. This substantial stash makes El Salvador the sixth country to hold 6,000 BTC or more.
El Salvador Now Holds $562 Million In Bitcoin
According to The National Bitcoin Office of El Salvador’s portfolio tracker, El Salvador’s BTC holdings now stand at 6,000.77 Bitcoin, currently worth $562.3 million following its latest purchase.
El Salvador holds the sixth most Bitcoin among nation-states, behind only the United States, China, the United Kingdom, Ukraine, and Bhutan, data shows.
While El Salvador typically adds one Bitcoin per day, it acquired 11 BTC, worth $1 million, just a day after striking a $1.3 billion deal with the International Monetary Fund (IMF) that stipulated changes on its controversial Bitcoin Law in return.
In September 2021, El Salvador became the first country to make Bitcoin legal tender. El Salvador’s National Bitcoin Office Director Stacy Herbert announced in a Dec. 19 post that the tiny Latin American nation may continue to purchase Bitcoin at an “accelerated pace” going forward.
Herbert further revealed that the Salvadoran government would sell or phase out its government-sponsored wallet, Chivo. The authorities gifted citizens $30 of free BTC via the app back in 2021.
Has Bukele’s Big BTC Bet Borne Fruit?
Since making Bitcoin legal tender, President Nayib Bukele has been a vocal supporter of crypto adoption. His government has launched several projects including a Bitcoin mining operation powered by geothermal energy from a volcano and the introduction of Bitcoin-backed volcano bonds. El Salvador also offers a so-called “freedom visa” for crypto enthusiasts.
El Salvador bought its 6,000 BTC at an average price of $45,465; it’s now worth $562 million, meaning the country is sitting on over $157 million in profits — a roughly 108% gain on its initial investment.
While it’s unclear whether other nation-states will actually follow in El Salvador’s footsteps and stockpile Bitcoin anytime soon, one thing is clear: Interest in holding the world’s largest cryptocurrency as a strategic reserve asset has reached a fever pitch.
