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El Salvador adds 162 Bitcoins to national reserves

El Salvador adds 162 Bitcoins to national reserves

GrafaGrafa2024/08/24 09:05
By:Liezl Gambe

El Salvador has been steadily increasing its Bitcoin (CRYPTO:BTC) reserves by purchasing one Bitcoin daily since March 16, adding a total of 162 coins to its national holdings. 

According to blockchain analytics firm Arkham Intelligence, the government-controlled wallet now holds 5,851 Bitcoins, valued at approximately $356.4 million.

Crypto analyst EmberCN has calculated that the average acquisition cost of El Salvador's Bitcoin holdings is around $44,835 per coin. 

This positions the nation with an unrealised profit margin of approximately $93.45 million. 

This daily buying aligns with President Nayib Bukele’s stated goal of purchasing one Bitcoin each day until the price becomes "unaffordable."

The initiative began with a significant transfer of 5,689 Bitcoins into a cold storage wallet, referred to by President Bukele as the nation’s "Bitcoin piggy bank." 

The wallet, which initially held around $386 million in Bitcoin, continues to grow as part of El Salvador’s broader cryptocurrency strategy.

In addition to expanding its Bitcoin reserves, El Salvador has proposed using cryptocurrency in trade negotiations with Russia. 

This move aims to circumvent the economic sanctions imposed on Russia by the United States and its allies due to the ongoing conflict in Ukraine. 

El Salvador, which uses the U.S. dollar as its official currency, faces challenges in trading with Russia, which has been restricted from accessing USD.

To enhance transparency, the Salvadoran government has provided more detailed information about its Bitcoin holdings through the mempool space tool, allowing for public auditing. 

This step is part of an effort to ensure accountability for the country’s cryptocurrency investments and build public trust.

El Salvador has also ventured into Bitcoin mining, utilising geothermal energy from its volcanoes. 

Since declaring Bitcoin as legal tender in 2021, the country has mined 474 Bitcoins, worth about $29 million. 

This environmentally friendly mining method is part of President Bukele’s vision to combine advanced technologies with renewable energy sources, though it remains a small component of El Salvador’s overall Bitcoin strategy.

In the meantime, Bitcoin has experienced a slight 0.7% decrease in the past 24 hours but has risen 5.1% over the last week.

At the time of reporting, the Bitcoin (BTC) price was $64,270.48.

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