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El Salvador Buys the Dip, Adds 11 BTC to Its Holdings
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El Salvador Buys the Dip, Adds 11 BTC to Its Holdings
Feb 4, 2025 9:42 AM

El Salvador has expanded its Bitcoin reserves by purchasing an additional 11 BTC on February 4.

The move is part of President Nayib Bukele’s ongoing strategy to accumulate the cryptocurrency, particularly during market downturns.

Bitcoin Purchases

According to the Nayib Bukele Portfolio Tracker, the latest acquisition brings El Salvador’s total holdings to 6,067.18 BTC, valued at approximately $613.7 million.

The country initially implemented a strategy of purchasing one Bitcoin per day but has recently accelerated its accumulation pace. Its National Bitcoin Office revealed via a February 4 post on X that in the past week alone, it has added over 20 BTC to its reserves.

President Bukele has made it clear that El Salvador’s goal is to continue acquiring more Bitcoin. He previously teased about getting the chance to “buy Bitcoin at a discount” after the U.S. government announced a $6.7 billion sale, an event typically associated with price volatility.

In September 2021, El Salvador became the first country to officially adopt BTC as a legal tender with the enactment of the Bitcoin Law. Since then, the government has introduced several initiatives connected to the cryptocurrency, including bonds, volcano-powered BTC mining, and a citizenship program linked to investments, while continuing to expand and maintain its holdings.

Last month, Bukele’s administration secured a $1.4 billion financing agreement with the International Monetary Fund (IMF), which included commitments to scale back certain Bitcoin initiatives.

Under the agreement, businesses are no longer required to accept cryptocurrency as payment, tax settlements in BTC have also been discontinued, and the governments role in the state-backed Chivo wallet has been reduced.

El Salvador Remains Committed to Bitcoin Strategy

The IMF has repeatedly expressed concerns over El Salvador’s Bitcoin adoption, warning of potential financial stability risks. However, despite the recent policy adjustments, the government remains committed to its broader strategy.

In December 2024, Stacy Herbert, director of the National Bitcoin Office, hinted that El Salvador would accelerate its Bitcoin acquisitions. She recently reaffirmed this position, stating:

El Salvador will continue buying Bitcoin (at possibly an accelerated pace AND at a discounted price) for its Strategic Bitcoin Reserve.”

The Central American nation’s crypto policies have also attracted interest from major industry players. Tether, the issuer of the world’s largest stablecoin, recently relocated its headquarters to the country. The firm cited its supportive regulatory environment and long-term economic vision for the move.

Additionally, President Bukele has personally invited Rumble CEO Chris Pavlovski to consider moving his company’s operations to El Salvador, further showing the country’s commitment to its Bitcoin-centred approach.

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