El Salvador Bitcoin has once again captured global attention with its latest strategic acquisition. The nation recently revealed a massive Bitcoin purchase worth $100 million, marking the largest single-day acquisition it has ever undertaken. This bold move, executed at 6:01 p.m. Eastern Time, saw El Salvador adding 1,090 BTC to its reserves.
This purchase is a continuation of President Nayib Bukele’s ambitious Bitcoin strategy. Since November 2022, the country has been consistently acquiring Bitcoin, purchasing one BTC daily. With this recent addition, El Salvador’s total Bitcoin holdings have surged to an impressive 7,474 BTC, valued at approximately $676 million.
El Salvador Bitcoin Strategy Amidst Market Dips
El Salvador’s strategic Bitcoin purchase occurred as Bitcoin’s value plummeted to its lowest levels since April, dipping below $90,000. Historically, the country has seized opportunities to bolster its Bitcoin reserves during such market downturns.
President Bukele, a vocal proponent of Bitcoin, shared a screenshot of this latest acquisition on his official X account. His consistent message has been that the country’s commitment to Bitcoin acquisitions remains unwavering.
Impact of the IMF Agreement on Bitcoin Purchases
Despite the impressive acquisition, questions have arisen regarding El Salvador’s adherence to its $1.4 billion loan agreement with the International Monetary Fund (IMF). This agreement explicitly prohibits the country’s public sector from purchasing Bitcoin.
Conflicting statements from El Salvador’s finance officials have added to the confusion. While they claimed no Bitcoin purchases had taken place since February, President Bukele’s actions suggest otherwise. An IMF report indicated that increases in Bitcoin holdings were due to the consolidation of assets across various government wallets rather than new purchases.
Stacy Herbert, head of the Bitcoin Office, previously affirmed El Salvador’s commitment to acquiring Bitcoin, even in defiance of the IMF deal. She highlighted how some critics trust the IMF’s statements over the documented actions of El Salvador on the Bitcoin blockchain.
The Block, an independent media outlet, has reached out to the Bitcoin Office for further comments. As of November 2023, The Block continues to provide objective and insightful news about the cryptocurrency industry, despite its majority investment by Foresight Ventures.
This article serves informational purposes and should not be construed as legal, tax, financial, or investment advice.
