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El Salvador added nearly 1,100 BTC to its reserves over the past seven days, taking advantage of low prices from the recent market downturn. Bukele reported the purchases on social media and celebrated the development, but the move raises concerns about compliance with the IMF agreement.
El Salvador Purchases 1,098 Bitcoin, Strategic Reserve Reaches 7,474 BTC
The Facts
While a selloff is shaking crypto markets, institutions and state-nations are taking advantage of the situation to keep accumulating bitcoin, leveraging the low price of the prime cryptocurrency.
El Salvador surprised the crypto ecosystem by acquiring 1,098.19 BTC, as prices dropped low during the week. The bitcoin acquired is currently valued at $101.14 million, as BTC prices hover at nearly $92.1K at the time of writing.
President Nayib Bukele reported the news on social media, celebrating the development. “Hooah,” he stated, posting an image from the National Bitcoin Office’s dashboard where the purchases were detailed.
With these new additions, El Salvador now holds 7,474.37 BTC, valued at over $688.4 million. Before, Bukele had promised to purchase a bitcoin each day until BTC becomes “unaffordable” with fiat currencies, a promise he had maintained even after inking a credit deal with the International Monetary Fund (IMF) that explicitly banned the country from accumulating bitcoin.
Read more: El Salvador Will Keep Buying 1 Bitcoin Daily Until BTC ‘Becomes Unaffordable’ With Fiat Currencies, Says President Bukele
Why It Is Relevant
El Salvador’s purchase, helmed by Bukele’s bitcoin-friendly stance, constitutes a vote of trust in the cryptocurrency’s future, more so when a bearish sentiment spreads across the whole ecosystem.
The development also raises questions about the source of the funds used for such a purchase, given that the IMF had confirmed that the country had stopped its bitcoin accumulation program, suggesting these additions might be movements between state-owned wallets.
It remains to be seen if there will be consequences for this huge purchase in the upcoming compliance review of the credit swap deal.
Looking Forward
El Salvador has shown its intention to keep accumulating bitcoin as prices go down, so it can execute more purchases if the cryptocurrency market keeps plunging.
FAQ
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What recent bitcoin purchase did El Salvador make?
El Salvador acquired 1,098.19 BTC during a market selloff for approximately $101.14 million. -
How many BTC does El Salvador hold now?
With this latest acquisition, El Salvador’s total Bitcoin holdings reached 7,474.37 BTC, valued at over $688.4 million. -
What did President Bukele say about the purchase?
President Nayib Bukele celebrated the acquisition on social media, affirming his commitment to buy 1 Bitcoin daily until prices become “unaffordable.” -
What concerns arise from this transaction?
Questions have emerged about the funds used for the purchase, especially since the IMF had banned El Salvador from accumulating more Bitcoin.