El Salvador has firmly established itself as a global frontrunner in Bitcoin adoption, becoming the sixth nation to amass over 6,000 BTC.
Bitcoin Holdings Cross 6,000 BTC
On December 29, the country added one additional Bitcoin to its reserves, bringing its total to 6,000.77 BTC. This holding is valued at approximately $569.3 million, according to data from the National Bitcoin Office’s portfolio tracker.
El Salvador’s investment in Bitcoin has seen a remarkable increase of 108.02%, with an average purchase price of $45,450 per coin, based on President Nayib Bukele’s portfolio updates.
A Milestone in Bitcoin Adoption
The country’s Bitcoin journey began on September 6, 2021, when it purchased its first 200 BTC. Shortly after, El Salvador became the first nation to adopt Bitcoin as legal tender.
Among countries with significant Bitcoin holdings, El Salvador ranks sixth. It trails behind the United States, China, the United Kingdom, Ukraine, and Bhutan, as per BitBo’s Bitcoin Treasuries data. Despite international criticism, including opposition from the International Monetary Fund (IMF), the Bukele administration has remained steadfast in its Bitcoin strategy.
Commitment to Bitcoin Accumulation
Stacy Herbert, the Director of El Salvador’s National Bitcoin Office, hinted in a December 19 social media post that the country may accelerate its Bitcoin purchases. Furthermore, the government has stated it has no intentions of selling its Bitcoin holdings, reaffirming that the cryptocurrency remains central to its economic plans.
However, changes are on the horizon for the Chivo wallet, the country’s official Bitcoin wallet. Reports suggest it will either be sold or phased out, with private-sector solutions expected to replace it.
IMF Deal Remains Unresolved
El Salvador’s $1.4 billion agreement with the IMF remains pending approval. Negotiations, which have faced hurdles due to the government’s Bitcoin policies, could potentially conclude after four years of discussions.
US States Explore Bitcoin Reserves
Across the United States, interest in Bitcoin reserves is growing. Ohio recently introduced legislation to add Bitcoin to its treasury reserves. The bill, led by House Republican leader Derek Merrin, follows similar initiatives in Texas and Pennsylvania.
On December 12, Texas Representative Giovanni Capriglione proposed the Texas Strategic Bitcoin Reserve Act. This bill seeks to make Bitcoin a reserve asset held by the state comptroller for at least five years. In November, Pennsylvania took a comparable step, with Representative Mike Cabell advocating for up to 10% of the state treasury’s balance sheet to be allocated to Bitcoin. The move highlights Bitcoin’s potential as a hedge against economic uncertainty.
Corporate Bitcoin Accumulation Grows
Corporate entities are also expanding their Bitcoin reserves. MicroStrategy and Metaplanet have continued adding to their holdings. MARA Holdings announced the acquisition of 11,774 BTC on December 10 via X. Riot Platforms, a prominent Bitcoin mining company, revealed plans to raise $500 million through a private bond offering to further bolster its Bitcoin reserves.
Federal Bitcoin Purchases Unlikely
Despite these developments, the U.S. federal government is not expected to purchase Bitcoin in 2025. Alex Thorn, Head of Research at Galaxy Digital, predicted in a December 27 report that discussions on a Bitcoin reserve policy might advance. However, the government’s focus will likely remain on managing its existing Bitcoin stockpile rather than acquiring additional assets.
The post El Salvador Becomes Sixth Country to Hold Over 6,000 Bitcoin appeared first on Cryptonews.
