President Nayib Bukele’s recent revelation showcases a remarkable increase in the country’s Bitcoin reserves, now standing at 5,689 BTC, doubling from the previous 2,864 BTC.
El Salvador, known for its pioneering move of adopting Bitcoin as legal tender, has remained steadfast in its HODL (Hold On for Dear Life) strategy, despite the market turbulence witnessed two years ago and the recent surge pushing towards new all-time highs.
The nation commenced its Bitcoin acquisitions back in September 2021, when Bitcoin was valued at $51,769.
Impressive Bitcoin Gains for El Salvador
President Nayib Bukele’s Bitcoin investment approach came under scrutiny when the value plummeted from $69,000 in November 2021 to $16,000 a year later. However, the investment regained profitability when Bitcoin surpassed the average purchase price of $42,600 in February.
According to reports from its Bitcoin tracker, El Salvador holds 2,864 BTC, currently valued at $188 million, procured through 12 transactions at an average price of $42,630 each. With Bitcoin witnessing a 176% increase in value over the past year, El Salvador’s unrealized gains have soared to $66 million, resulting in a 54% profit from the initial investment.
While these figures are based on publicly available data, they do not encompass all of the country’s Bitcoin holdings. In a recent announcement on X, President Nayib Bukele mentioned additional Bitcoin acquisitions through various revenue streams.
These include proceeds from a unique citizenship passport scheme involving the conversion of Bitcoin into U.S. dollars to support local enterprises, earnings from Bitcoin mining operations, and revenue generated from government-provided services.
Furthermore, in December, El Salvador introduced its “Freedom VISA” program, offering residency to up to 1,000 individuals annually who invest a minimum of $1 million in Bitcoin or Tether (USDT) stablecoins.
El Salvador Secures Bitcoin Holdings in Cold Wallet
President Bukele disclosed this week that the nation has established its inaugural Bitcoin “piggy bank,” securely stored within a vault on national territory. He shared an image revealing a wallet containing 5,689.68 BTC, valued at $406 million.
We’ve decided to transfer a big chunk of our #Bitcoin to a cold wallet, and store that cold wallet in a physical vault within our national territory.
You can call it our first #Bitcoin piggy bank 🇸🇻
It’s not much, but it’s honest work 😂 pic.twitter.com/dqzedykxT1
— Nayib Bukele (@nayibbukele) March 14, 2024
The accumulation of the 5,689 BTC by El Salvador involved multiple transactions. An initial transfer of 1,120 BTC, valued at $76.5 million, was conducted on March 13, requiring authorization from a 3/5 multi-signature setup, with approval from four signatories, as reported by Mempool.
The largest transaction involved the transfer of 4,000 BTC, equivalent to $273 million, on March 14, approximately two hours after President Bukele’s announcement.
For the first time, President Bukele has associated the country’s Bitcoin assets with a specific wallet address, a departure from his usual method of providing updates on the national Bitcoin stockpile via social media platforms.
