Bukele’s ‘Bitcoin Piggy Bank’: El Salvador’s Reserves Now Stand At 5,851 BTC

Bitcoin Cryptocurrencies El Salvador

Crypto Journalist

Veronika Rinecker

Crypto Journalist

Veronika Rinecker

Author Categories

Cryptonews Reports

About Author

Veronika Rinecker is based in Germany and studied international journalism and media management. She specializes in reporting on topics such as politics and regulation, energy, blockchain, and...

Author Profile

Share

Copied

Last updated: 

August 23, 2024

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

El Salvador, the first country to adopt Bitcoin (BTC) as legal tender, continues to accumulate the cryptocurrency.

Since March 16, 2024, a cold wallet believed to be owned by the Salvadoran government has acquired one Bitcoin every day, according to recent data from blockchain analytics platform Arkham Intelligence.

Daily Bitcoin Buys Boost El Salvador’s Reserves

This consistent buying strategy has added 162 Bitcoins to the country’s reserves, bringing the total to 5,851 as of August 23, 2024. The current market value of these holdings stands at approximately $357.2 million.

Arkham Intelligence data also reveals the daily purchase pattern on this particular wallet. Interestingly, while most purchases were for one Bitcoin, there were a few instances where the amount purchased was less than $1.

Crypto analyst EmberCN estimates in his X post from Aug. 23 that the average cost per Bitcoin in El Salvador is around $44,835. This translates to a potential upside of $93.45 million (+35%) based on current market prices.

El Salvador’s Bitcoin Strategy – More Than Just Buying

El Salvador’s president, Nayib Bukele, initiated this daily buying program in March 2024 and stated his intention to continue until Bitcoin becomes “unaffordable.”

When the purchases began, El Salvador transferred 5,689 Bitcoin to the cold storage wallet, then valued at $386 million. Bukele famously referred to this wallet as the country’s “first Bitcoin piggy bank.”

We've decided to transfer a big chunk of our #Bitcoin to a cold wallet, and store that cold wallet in a physical vault within our national territory.

You can call it our first #Bitcoin piggy bank 🇸🇻

It's not much, but it's honest work 😂 pic.twitter.com/dqzedykxT1

— Nayib Bukele (@nayibbukele) March 14, 2024

But the government’s ambitions go beyond mere financial gain. Bukele has made it clear that he has no plans to sell the country’s Bitcoin holdings, suggesting that he believes in BTC’s potential for significant economic growth. Experts also predict that El Salvador could eventually become one of the richest countries in the world if the price of BTC continues to rise.

To transparently inform citizens about its Bitcoin transactions, El Salvador’s National Bitcoin Office launched a website in May 2024 to track the Ministry of Finance’s coin holdings in partnership with mempool.space, an organization that publishes Bitcoin transaction data.

Beyond direct purchases, El Salvador has also tapped into its geothermal energy to mine Bitcoin. Since 2021, the nation’s volcanic power has mined 474 BTC, valued at approximately $29 million.

El Salvador to Boost Bitcoin Literacy

To foster a deeper understanding of Bitcoin within the public sector, El Salvador’s National Bitcoin Office will also provide Bitcoin training and certification to 80,000 government employees.

“Thousands of El Salvador’s civil servants will soon receive the highest standard of instruction on Bitcoin,” said Stacy Herbert, Director of El Salvador’s Bitcoin Office in its X post from Aug. 20. “And this will have the compounding effect of excellence begetting more excellence in El Salvador, the home of new capital markets on Bitcoin”.

El Salvador keeps winning because we keep building to the very highest standards. For three years now, the @bitcoinofficesv has been trailblazing the path upon which all other nations will follow.

Along with creating @cuboplus, building a new K-8 Bitcoin Workbook & introducing… pic.twitter.com/IzoZ1XIccW

— Stacy Herbert 🇸🇻🚀 (@stacyherbert) August 20, 2024

Previously, El Salvador has already organized Bitcoin training programs and integrated Bitcoin education into public schools. Since 2023, the “My First Bitcoin” (orig. “Mi Primer Bitcoin”) project has been included in the school curriculum to educate the younger generation about the digital asset.

Bitcoin currently has a market capitalization of over $1.2 trillion, representing more than half (53.67%) of the total cryptocurrency market. The price of BTC has seen a slight increase of 5.7% over the past week.