El Salvador has been steadily increasing its Bitcoin holdings, purchasing one Bitcoin every day since March 16, 2024. This consistent acquisition strategy has added 162 Bitcoin to the country's national reserves, bringing the total to 5,851 BTC, valued at approximately $356.4 million. The data comes from blockchain analytics platform Arkham Intelligence, which tracks the wallet reportedly owned by the Salvadoran government.
The daily Bitcoin purchases align with President Nayib Bukele's promise to buy one Bitcoin each day. This initiative began as part of the country's broader strategy to embrace cryptocurrency as a national asset. President Bukele has previously described the wallet as El Salvador’s first “Bitcoin piggy bank,” highlighting the government's commitment to incorporating Bitcoin into its financial system.
Consistent Buying Strategy
The wallet's inflow chart reveals a consistent buying pattern, with the government adding one Bitcoin per day. The latest purchase was made just a few hours ago at the price of $60,500. However, there have been occasional days where the wallet recorded smaller BTC purchases, sometimes less than $100. These purchases reflect El Salvador's strategic approach to gradually increasing its Bitcoin holdings while taking advantage of market fluctuations.
Financial Impact and Transparency
According to crypto analyst EmberCN, the average cost of El Salvador's Bitcoin holdings is around $44,835. This strategic buying has resulted in a floating profit of approximately $93.45 million for the country. The consistent accumulation and growing value of Bitcoin in El Salvador's portfolio demonstrate the government's confidence in cryptocurrency as a long-term investment.
To further enhance transparency, El Salvador has created a mempool space that allows the public to audit the nation's Bitcoin holdings. This move aims to foster trust and provide clear insights into how the country's digital assets are being managed.
Bitcoin as a Strategic Asset
El Salvador's Bitcoin strategy is not just about accumulation but also about leveraging the cryptocurrency for international trade. Recently, President Bukele's government proposed using Bitcoin for trade with Russia, as a way to bypass sanctions imposed by the United States and its allies due to Russia's ongoing conflict with Ukraine. Given that El Salvador also recognizes the U.S. dollar as a national currency, the country's ability to engage in trade with sanctioned nations using Bitcoin could provide a significant economic advantage.
The Bigger Picture
El Salvador's adoption of Bitcoin has placed the nation at the forefront of the global cryptocurrency movement. With Bitcoin's market capitalization now exceeding $1.2 trillion, representing more than 53% of the entire cryptocurrency market's value, the country's bet on Bitcoin seems to be paying off. As Bitcoin continues to grow, El Salvador's early and ongoing investments could position it as a key player in the digital currency space.
