This is not the first time that El Salvador has taken advantage of bitcoin’s fall. The country would now hold a reserve of 2,301 bitcoins.
While the cryptocurrency market is experiencing a major drop, with bitcoin even briefly falling below the $30,000 mark, the President of El Salvador Nayib Bukele is not changing his strategy on bitcoin.
In a tweet posted yesterday on Twitter, the latter announced that his country had bought 500 bitcoins at an average price of $30,744, thus taking advantage of the drop in the cryptocurrency. Total purchase price: $15.3 million.
According to the count made by Bloomberg, El Salvador now holds a total reserve of 2,301 bitcoins, or the equivalent of $73 million at the time of writing this article. The country had made bitcoin legal tender on its territory in September 2021.
El Salvador’s Biggest Bitcoin Purchase
This purchase of 500 bitcoins remains the largest acquisition of bitcoins by El Salvador, adding to the other purchases made by the country. Indeed, this is not the first time that El Salvador has decided to buy this cryptocurrency, taking advantage of the drop in its price. The Salvadoran president’s credo is even to say “We just bought the dip” on Twitter.
On September 7, 2021, El Salvador had decided to buy 400 bitcoins, the cryptocurrency being worth $52,300 at the time of purchase. On September 20, El Salvador had also taken advantage of a drop in the price of bitcoin, falling from 47,000 dollars to 42,500 dollars to buy 150 more.
On October 27, 2021, the country had also bought 420 bitcoins, with bitcoin falling below the $60,000 mark, which did not scare the president of El Salvador. Similarly, on November 26, 2021, the country bought 100 bitcoins at a price of $54,108 at the time of purchase. He also bought 150 bitcoins on December 3, 2021 at a price of $48,670, and 21 bitcoins at a price of $49,280 on December 22. In addition, the country had also taken advantage of the fall in the price of bitcoin in January 2022 to acquire 410 bitcoins at a price of 36,585 dollars.
Despite pressure from the International Monetary Fund (IMF), which had recommended that the country give up bitcoin as legal tender, El Salvador therefore continues to chart its course, continuing to believe in the potential of the crypto-asset. The country is also faced with investor mistrust vis-à-vis its “bitcoin bond”, a government bond backed by bitcoin (also called “vulcano bonds”). The government planned to issue this 10-year bond (with bitcoin coupons representing annual interest of 6.5%) by March. But so far, no investors have come forward.