El Salvador continues to add more Bitcoins to its portfolio, raising the total to $349 million. Bukele’s government has been buying one bitcoin every day since November 2022. This strategy has given a 49% return with an unrealized profit of $ 13.26 million.
El Salvador Buys Bitcoin Daily, Boosts Reserves to $349M
Starting from 2022, El Salvador has been in the habit of buying 1 BTC every day. The country’s 5,875 BTC are worth $349 million at the time of writing. This is because, through daily purchases, the government has been able to develop a good Bitcoin portfolio.
From on-chain data, it is evident that El Salvador’s Bitcoin purchases are logged. The last acquisition was made at $61,000. This shows the country’s strong stance in buying Bitcoin irrespective of the market situation, showing that the country has confidence in the asset.
Salvador is the only country that uses Bitcoin as its reserve currency. President Bukele has stressed that it is important for the goal of the country’s financial sovereignty and decreasing the dependency on foreign debt.
El Salvador to Decrease Dependence on Foreign Borrowing
In a recent move, President Nayib Bukele stated that El Salvador will not seek external borrowing to fund its next budget. The country wants to use its Bitcoin holdings and mining that is based on geothermal energy for the growth of the economy.
This is a new approach in financial management since El Salvador wants to minimize on foreign debt. Bukele has embraced Bitcoin with the view of making the nation’s economy self-contained.
In doing so, the country aims at improving its fiscal balance and channeling more resources to the development of the nation. This move shows Bukele’s long-term economic vision that is anchored on investing in Bitcoin.
The non-reliance on external debt has become a subject of interest across the world. The decision made by El Salvador shows that the government has become more and more assured of Bitcoin as a valuable currency for the future of the nation.
Bhutan Surpasses El Salvador’s Holdings
It currently boasts 13,029 BTC, way ahead of the Central American country of El Salvador which has 5,875 BTC. Bhutan’s $758 million worth of holdings form 25% of the country’s GDP. These reserves were developed through hydroelectric Bitcoin mining that was launched by Bhutan’s investment arm, Druk Holding.
Bhutan started mining Bitcoin in 2019 when one Bitcoin was selling at $5,000. In 2023 the country joined forces with Bitdeer in an attempt to further develop its mining activities. There is high potential for the mining sector in Bhutan which is expected to generate an additional 500MW by the year 2025.
