El Salvador’s Strategic Bitcoin Accumulation: A Look at the Country’s Growing Holdings
Since mid-March, El Salvador has been steadily building its Bitcoin reserves, reinforcing its commitment to the cryptocurrency that it officially adopted as legal tender in 2021. By purchasing 1 BTC every day, the Salvadoran government has added 160 BTC to its holdings over the past five months. As of now, the country’s total Bitcoin stash stands at 5,850 BTC, with a market value of approximately $355.83 million.
The strategy of daily purchases has allowed El Salvador to accumulate Bitcoin at an average price of $44,835 per coin. This methodical approach to accumulation has proven profitable, with the current value of the holdings yielding a floating profit of $93.45 million—a 35% gain on paper. This ongoing investment demonstrates the country’s strong belief in Bitcoin’s long-term potential and its role in the national economy.
El Salvador’s commitment to Bitcoin goes beyond just holding the cryptocurrency. The country has implemented several innovative projects, including Bitcoin bonds, volcano-powered BTC mining, and a citizenship program tied to Bitcoin investments. These initiatives highlight the government’s broader vision of integrating Bitcoin into various aspects of its economy and infrastructure.
In addition to financial investments, El Salvador is also investing in education related to Bitcoin. Recently, the National Bitcoin Office (ONBTC) launched a training program aimed at educating 80,000 government employees on Bitcoin management, legal frameworks, and public administration. This initiative, known as “Certification in Public Administration 1,” is designed to ensure that public servants are well-equipped to handle the strategic and policy-related aspects of Bitcoin’s use as legal tender.
El Salvador’s success with Bitcoin has not gone unnoticed. In fact, Argentina, a country grappling with severe inflation, has sought guidance from El Salvador, looking to replicate some of its strategies as it explores its own path toward cryptocurrency adoption.
