El Salvador Bitcoin Holdings Grow Daily
23 Aug, 2024 ● Crypto News
El Salvador, the first country to recognize Bitcoin as legal tender, has continued to actively accumulate the cryptocurrency.
Recent data from blockchain analytics platform Arkham Intelligence reveals that the Salvadoran government has been consistently adding to its Bitcoin reserves, purchasing one Bitcoin each day since March 16.
This ongoing acquisition has resulted in an additional 162 Bitcoin for the country, bringing its total holdings to 5,851 BTC, which is valued at approximately $356.4 million based on current market prices.
President Nayib Bukele, who spearheaded El Salvador’s adoption of Bitcoin, has been a strong advocate of cryptocurrency as a tool for economic independence and innovation
His decision for the government to make daily purchases of 1 BTC underscores his long-term dedication to integrating Bitcoin into the nation’s financial system.
The series of purchases began when Bukele’s government transferred 5,689 BTC into a cold storage wallet on March 16, 2024, a move that Bukele described as establishing the country’s first “Bitcoin piggy bank.”
These purchases have drawn both praise and concern from the international community.
Supporters view Bukele’s bold strategy as a forward-thinking move toward financial sovereignty, especially in a nation that has historically faced economic instability.
Crypto analyst EmberCN noted that the Salvadoran government currently has a floating profit of around $93.45 million, with an average purchase price of approximately $44,835 per Bitcoin, suggesting that Bukele’s strategy appears successful in the short term.
To address concerns about transparency, the government has implemented a mempool space, allowing for public auditing of its Bitcoin holdings.
This initiative is intended to build trust and demonstrate accountability in managing public funds related to cryptocurrency investments.
In addition to direct Bitcoin purchases, El Salvador has also invested in Bitcoin mining utilizing the country’s abundant volcanic geothermal energy.
Since 2021, the nation has mined 474 Bitcoin, valued at about $29 million.
This environmentally friendly approach to Bitcoin mining aligns with Bukele’s vision of integrating technology with natural resources, though it represents a relatively small part of the country’s overall Bitcoin strategy.
Bukele was sworn in for another five-year presidential term following a decisive election victory in February.
Sources:
https://cointelegraph.com/news/el-salvador-daily-bitcoin-purchases-bukele-strategy
https://platform.arkhamintelligence.com/explorer/address/32ixEdVJWo3kmvJGMTZq5jAQVZZeuwnqzo
