El Salvador has officially joined the ranks of countries holding over 6,000 Bitcoin (BTC), solidifying its position as a pioneer in adopting cryptocurrency as a national asset. The nation, led by President Nayib Bukele, now holds 6,000.77 BTC, valued at approximately $569.3 million as of December 29, 2024.
El Salvador Expands Its Bitcoin Portfolio
According to the National Bitcoin Office of El Salvador, the country acquired an additional 1 BTC, bringing its total holdings to 6,000.77 BTC. The government’s average purchase price stands at $45,450 per Bitcoin, which means the country has seen a 108.02% gain on its investment so far.
El Salvador made its first Bitcoin purchase on September 6, 2021, shortly before becoming the first country in the world to recognize Bitcoin as legal tender.
Bitcoin Holdings Among Nation-States
El Salvador ranks as the sixth-largest Bitcoin-holding country, trailing the United States, China, the United Kingdom, Ukraine, and Bhutan, according to BitBo’s Bitcoin Treasuries data.
While El Salvador has consistently purchased one Bitcoin daily, notable acquisitions occurred after striking a $1.4 billion deal with the International Monetary Fund (IMF). On December 22, despite the IMF urging El Salvador to scale back its Bitcoin-related initiatives, the government made a $1 million purchase.
Future Plans and Challenges
Stacy Herbert, the director of El Salvador’s National Bitcoin Office, hinted at the potential for increased Bitcoin purchases at an accelerated rate. A representative from the office confirmed the government’s commitment to Bitcoin as its primary financial strategy, adding that selling its holdings is not part of the plan.
However, the Chivo wallet—a state-sponsored Bitcoin wallet—may be sold or phased out. Herbert anticipates that private Bitcoin wallets will continue to play a key role in serving the country’s needs.
The IMF still needs to finalize its approval of the $1.4 billion deal with El Salvador. The negotiations have been challenging, as the IMF has expressed concerns over the risks associated with the country’s Bitcoin policies.
