El Salvador’s Bitcoin Bet Pays Off: Nation’s BTC Holdings Surge with New Proof-of-Reserves Tool

BY BLOCKDESK NEWS · May 14, 2024 · 2 MIN READ

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El Salvador has launched a new proof-of-reserves website, providing tools for tracking the country’s Bitcoin holdings using on-chain data. This online Bitcoin treasury offers real-time updates on El Salvador’s BTC reserves. Currently, the nation holds 5,748 BTC, valued at around $360 million, with Bitcoin trading at approximately $63,000.

In the past week, El Salvador acquired seven BTC worth over $438,000, and in the last 30 days, it added a total of 31 BTC valued at $1.94 million, according to the website. These purchases are part of El Salvador’s strategy to add one Bitcoin to its treasury every day.

El Salvador made headlines in September 2021 when it became the first country to adopt Bitcoin as legal tender. The government’s initiative aimed to enhance financial inclusion, streamline remittance payments, and attract financial innovation. President Nayib Bukele faced criticism when Bitcoin’s price dropped from its peak of $69,000 in November 2021 following the FTX exchange collapse. During the subsequent bear market, El Salvador’s Bitcoin holdings experienced significant losses, with Bitcoin’s value falling as low as $16,000.

LA LIBERTAD, EL SALVADOR – NOVEMBER 20: President of El Salvador Nayib Bukele speaks during the inauguration of a new Vijosa Laboratories plant on November 20, 2023 in La Libertad, El Salvador. (Photo by Alex Peña/Getty Images)

Despite these challenges, El Salvador’s Bitcoin holdings now show an unrealized profit of over $57.4 million. The country has been using a dollar-cost-averaging strategy to invest in Bitcoin since 2021, with an average purchase price of $43,097 per BTC. With Bitcoin trading above $62,000, El Salvador’s Bitcoin investment has proven to be highly profitable.

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