El Salvador’s Growing Bitcoin Holdings: A Strategic Accumulation
El Salvador continues to expand its Bitcoin reserve, reinforcing its commitment to the cryptocurrency despite external pressures. The country recently acquired an additional 12 Bitcoin, further solidifying its position as a pioneer in national Bitcoin adoption. With this latest purchase, El Salvador’s total Bitcoin holdings have now reached 6,068 BTC, currently valued at over $554 million.
The latest acquisition was executed in two stages: On February 4, the government secured 11 Bitcoin for just over $1.1 million, at an average price of $101,816 per Bitcoin. Shortly after, another single Bitcoin was purchased for $99,114, according to the country’s Bitcoin Office tracker. These strategic buys are part of an ongoing effort to build what President Nayib Bukele envisions as the world’s first “Strategic Bitcoin Reserve.”
In an X post on February 4, the Bitcoin Office declared, “El Salvador has stacked 21 BTC this week!” The update also highlighted that the country had purchased a total of 60 BTC over the preceding 30 days. The message underscored the nation’s steadfast approach, stating, “The first Strategic Bitcoin Reserve in the world keeps growing and so El Salvador keeps winning.”
Bitcoin Market Fluctuations and El Salvador’s Response
El Salvador’s latest accumulation occurred against a backdrop of Bitcoin market volatility. The cryptocurrency briefly dipped to a 24-hour low of approximately $96,000 before rebounding to around $98,000. However, it remains below its intraday high of over $100,700, as per CoinGecko’s data.
These market movements have not deterred Bukele’s administration from continuing its Bitcoin strategy. The country’s ongoing accumulation aligns with its long-term vision of leveraging Bitcoin as a financial asset. By capitalizing on market dips, El Salvador seeks to strengthen its position, reinforcing the belief that Bitcoin’s long-term appreciation outweighs short-term volatility.
The IMF Agreement and Its Impact
Interestingly, this latest Bitcoin purchase follows a significant financial development. Last month, President Bukele secured a $1.4 billion financing deal with the International Monetary Fund (IMF), which required the government to adjust certain aspects of its Bitcoin policies. Among the modifications, El Salvador agreed to make Bitcoin acceptance voluntary within the private sector and reduce state management of its Chivo crypto wallet.
Despite these compromises, Bukele’s administration has demonstrated that its Bitcoin strategy remains on course. Shortly after the IMF deal was signed, the country proceeded with another Bitcoin purchase of $1 million, proving that the agreement would not deter its accumulation plans. In a move that highlighted the government’s commitment, El Salvador’s Congress swiftly passed amendments to its Bitcoin laws to comply with IMF stipulations, further strengthening the nation’s financial credibility.
El Salvador’s Commitment to Bitcoin for the Future
While the IMF agreement required adjustments, it has not derailed El Salvador’s enthusiasm for Bitcoin. National Bitcoin Office Director Stacy Herbert reaffirmed this commitment in late December, assuring that the country’s Bitcoin strategy remains unchanged. Furthermore, a Bitcoin Office spokesperson previously disclosed to Cointelegraph that El Salvador plans to continue accumulating Bitcoin, with intentions to “intensify in 2025.”
El Salvador’s approach underscores its confidence in Bitcoin’s long-term value, positioning the nation uniquely on the global financial stage. As the first country to officially adopt Bitcoin as legal tender, its strategy is being closely watched by both critics and supporters. Whether this aggressive accumulation will pay off in the long run remains a subject of speculation, but for now, El Salvador continues to stack Bitcoin, unwavering in its belief in the cryptocurrency’s future potential.
