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- El Salvador has been buying one Bitcoin daily since March 16, 2024, adding 162 Bitcoins to its reserves.
- The government’s average cost per Bitcoin is around $44,835, potentially yielding a 35% gain.
El Salvador, the pioneering country in adopting Bitcoin (BTC) as legal tender, continues to expand its cryptocurrency reserves. According to data from blockchain analytics firm Arkham Intelligence, a cold wallet linked to the Salvadoran government has been purchasing one bitcoin daily since March 16, 2024. This steady acquisition has seen the country’s reserves rise to 5,851 Bitcoins as of August 23, 2024, with an addition of 162 Bitcoins. At present, these holdings are valued at about $357.2 million.
Government Cold Wallet Executes Regular Transactions
The data from Arkham Intelligence also shows that the government’s cold wallet is making routine daily purchases of Bitcoin. Although the majority of the transactions include the purchase of one Bitcoin, there have been instances where amounts less than $1 have been transacted.
Crypto analyst EmberCN has put the average cost per Bitcoin for El Salvador at around $44,835. If implemented today, this strategy could result in a potential gain of $93. 45 million, which is 35% more than the current value.
The Salvadoran president authorized the adoption of this daily Bitcoin purchase plan for the purpose of holding the digital currency until it becomes expensive enough that it cannot be bought. This wallet, which Bukele has described as the first ‘Bitcoin piggy bank’ for the country, reflects El Salvador’s long-term adoption of the cryptocurrency.
El Salvador’s Bitcoin plan is not only limited to buying and holding digital currency. The government has not shown any interest in selling Bitcoin, indicating that it has high expectations of BTC to boost the economy exponentially. Experts believe that if Bitcoin’s price keeps increasing, El Salvador can become one of the richest countries in the world.
El Salvador Launches Public Bitcoin Reserve Tracking Website
In May 2024, the National Bitcoin Office of El Salvador, in collaboration with mempool. space launched a website for tracking the Ministry of Finance’s Bitcoin reserves. This initiative seeks to establish a platform through which citizens can be informed of the country’s Bitcoin transactions.
Additionally, El Salvador has exploited its geothermal power to mine Bitcoin since 2021. The country’s crypto mining has been very productive. It has recently extracted 474 BTC, which has a market value of $29 million. This is in line with the country’s Bitcoin strategy, as the mining process is powered by renewable energy.
El Salvador is also working to increase the awareness of Bitcoin among its public sector employees. As we previously reported, the National Bitcoin Office targets 80,000 government workers for Bitcoin training and certification. Stacy Herbert, Director of El Salvador’sBitcoin Office, mentioned this in a recent X post, stating that quality Bitcoin education will go a long way in enhancing the performance of the country’s new capital markets.
The “My First Bitcoin” initiative launched in 2023 aims to introduce Bitcoin into school curriculums. This program aims to ensure that students learn about Bitcoin to help them understand the digital asset at a tender age.
The market capitalization of Bitcoin is now more than $1.2 trillion and takes over 53% of the total cryptocurrency market. The price of BTC has also risen by 5.7% in the last few days due to the constant market interest and trade.
