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.

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The new law stipulates that financial entities with at least $50 million in capital can qualify as investment banks. These banks, distinct from traditional commercial banks, can now obtain various licenses to provide crypto-related financial instruments to investors possessing over $250,000 in liquid assets, including Bitcoin.

Bitcoin Investment: A New Era for El Salvador’s Financial System

This law builds upon previous legislation which established crypto license categories, such as Bitcoin service provider, digital asset service provider, and digital asset issuer. Now, investment banks can integrate these licenses with their existing bank licenses, enabling them to hold Bitcoin, issue tokens, and structure crypto-linked deals without needing an entirely new regulatory framework.

According to Dania González, a representative involved in the legislative process, “the institutional architecture of the Salvadoran financial system will be expanded, creating a new, regulated entity that complements the traditional banking system.”

Shift from Retail to Institutional Bitcoin Investment

This move marks a significant transition from a focus on retail adoption to targeting institutional capital. Initially, in 2021, El Salvador mandated businesses to accept Bitcoin, but this regulation and other public sector Bitcoin efforts were scaled back in 2025 to secure a $1.4 billion loan facility from the IMF.

Despite the initial push for retail adoption, reports indicate low uptake among citizens, with only 1% of remittances involving crypto assets and just 20% of Salvadorans adopting cryptocurrency. However, the Bitcoin Office, under President Nayib Bukele, claims ongoing Bitcoin purchases, although the central bank and finance minister report no new acquisitions since the IMF agreement.

These developments suggest that the apparent Bitcoin “purchases” merely represent the consolidation of previously acquired assets into a central reserve wallet.

El Salvador’s new law signals a clear pivot towards institutional investment, aligning with global trends where larger financial players increasingly enter the crypto space. This strategic shift could potentially boost the country’s economic standing and further integrate Bitcoin into mainstream financial services.

As Bitcoin Investment opportunities expand, El Salvador positions itself as a pioneer in incorporating cryptocurrency within its financial architecture, offering a model for other nations to consider.

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In his social media post, Bukele disclosed a screenshot showing El Salvador’s BTC assets valued at over $644.4 million. This sum is a significant increase from the initial investment of $287.1 million, equating to an unrealized profit margin of 124.4%. The country has already generated an impressive $69.8 million in unrealized gains this year alone.

At the moment, El Salvador possesses approximately 6,181 BTC, which is valued around $639 million, according to the nation’s Bitcoin office. In a groundbreaking move, El Salvador became the first nation to officially adopt Bitcoin as legal tender in June 2021, a move spearheaded by Bukele to boost financial inclusivity.

Since then, the country has been consistently adding to its Bitcoin reserves. Bukele has continued to advocate for Bitcoin accumulation, even in the face of agreements with the IMF to restrict Bitcoin-related activities in return for a financial aid package. These agreements, which included making Bitcoin acceptance voluntary for the private sector, were swiftly transformed into a bill and passed by the legislature in January.

In Bukele’s words, “If it didn’t stop when the world ostracized us and most ‘bitcoiners’ abandoned us, it won’t stop now, and it won’t stop in the future.” As of now, Bitcoin is trading at $103,643, per The Block’s Bitcoin price page, after reaching a local high of roughly $106,500 earlier in the day. The world’s biggest cryptocurrency has been rallying in recent weeks as investor confidence in Bitcoin’s durability has grown amid expectations of a resolution to the U.S.-China trade dispute.

Disclaimer: The Block is an independent news source providing news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other firms in the crypto sector. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to function independently to deliver objective, impactful, and timely crypto industry information. This article is for informational purposes only and should not be taken as legal, tax, investment, financial, or other advice.

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According to CEO Simon Gerovich, the Tokyo-based company now boasts of a total of 6,796 BTC, purchased for an aggregate sum of $608.2 million at an average price of $89,492. Considering the current market rates, the firm’s total Bitcoin portfolio is estimated to be worth approximately $706.7 million.

In a separate statement, Gerovich noted, “Metaplanet now holds more Bitcoin than El Salvador. We’ve come a long way from our humble beginnings, and we’re just getting started.” El Salvador, which adopted Bitcoin as a legal tender in 2021, currently possesses 6,174 BTC, as per the country’s Bitcoin Office.

Metaplanet embarked on its Bitcoin accumulation journey in April 2024 and has consistently increased its holdings. The firm aims to reach a benchmark of 10,000 BTC by the end of 2025 and crossed the halfway mark last month. The Bitcoin purchases have been financed through a series of bond issuances, the latest being a $21.25 million bond sale announced last Friday.

Data from Bitcointreasuries.net reveals Metaplanet as the largest publicly listed corporate Bitcoin holder in Asia, with a global rank of 11. In the meantime, Metaplanet shares saw an increase of 3.82% in Monday trading in Japan, with the markets still open.

Disclaimer: The Block is an independent news outlet providing news, research, and data. Foresight Ventures, a majority investor of The Block as of November 2023, invests in other companies within the crypto space including crypto exchange Bitget. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry.

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Cathie Wood Initiates El Salvador’s AI Public Education Program

Cathie Wood, the founder of Ark Invest, is taking the lead in El Salvador’s AI education initiative by providing the maiden lecture for this public education venture. The Bitcoin Office of El Salvador announced on March 23rd that the program aims to utilize industry experts to offer university-level artificial intelligence education to students and professionals, making it the only national education scheme to do so.

Wood met with Nayib Bukele, President of El Salvador, to discuss the future of crypto and AI policy in the nation. Wood suggested that with a continued emphasis on pro-innovation policies, El Salvador could potentially boost its GDP tenfold in the next five years.

Bitcoin Requires $85k Weekly Close to Ward Off Correction to $76k: Analysts

Bitcoin analysts are monitoring the weekly close to predict Bitcoin’s price trajectory for the upcoming week, as both traditional and crypto markets exhibit uncertainty due to global trade war concerns and easing inflation fears.

Ryan Lee, chief analyst at Bitget Research, indicates that Bitcoin’s price might face more downside next week unless it can close the week above the psychological benchmark of $85,000. A close above this point could prevent a drop to $76,000 and signal strength, while a close at $87,000 could offer even clearer bullish confirmation.

Perpetual ‘Cat and Mouse’ Game in Crypto Security: Wallet Executive

As cryptocurrency wallet providers advance their techniques, so too do malicious actors. Ledger’s chief experience officer, Ian Rogers, warns that this creates a perpetual ‘cat and mouse’ game between security advancements and ever-evolving threats.

Rogers observes that the most basic scams often prove most effective as they prey on human error. He warns against sharing 24-word phrases with anyone, as this is a common tactic employed by criminals. Rogers also highlighted a prevalent crypto scam where victims are lured by responses to any crypto-related post on Twitter, often encouraging a direct message for ‘help’.

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Ether Trader Bags $16 Million as ETH Price Drops to $3,000

One astute cryptocurrency trader has reaped almost $16 million by leveraging Ether’s price slump. This trader realized $15.7 million in unrealized profits from a leveraged Ether short position, utilizing a common strategy among traders to bet on a price decrease. This involves ‘borrowing’ the base cryptocurrency from a broker, selling it at its current price, and then repurchasing it when the price drops.

The trader initiated the 50x leveraged short position when ETH was trading at $3,388, with a liquidation threshold of $4,645, as per Hypurrscan data. The trader also pocketed an additional $2.3 million in funding fees from their leveraged position. However, it’s important to remember that while leveraged trading can potentially boost returns, it can also significantly escalate downside risks and result in a loss of the initial investment.

Bitcoin Dips Below $100,000 Following Donald Trump’s Import Tariffs

Bitcoin fell under $100,000 for the first time in six days as US President Donald Trump enacted an executive order imposing import tariffs on goods from China, Canada, and Mexico. The crypto industry is split over the potential impact of these tariffs on the broader market.

El Salvador Buys More BTC Despite IMF Deal

El Salvador purchased an additional two Bitcoin on February 1st, continuing its trend of accumulating BTC. Despite recent changes to its Bitcoin legal tender laws and the IMF deal, the country continues to add Bitcoin to its national reserve.

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Bitcoin and Ethereum: Movements and Recoveries

In other news, the cryptocurrency market saw significant movements with Bitcoin experiencing a slight dip as the infamous Mt. Gox exchange moved over $7 billion worth of Bitcoin, affecting its price. Meanwhile, an Ethereum user regained 80% of their funds lost in a re-staking exploit, highlighting issues of security and recovery within the blockchain space. This event has sparked discussions about the safety measures and vulnerabilities associated with crypto assets.

Argentina and El Salvador: Learning from Bitcoin Adoption

On the regulatory front, Argentina is seeking insights from El Salvador’s pioneering move to adopt Bitcoin as legal tender. The engagement aims to understand and possibly replicate Bitcoin’s integration into their financial systems, reflecting a growing trend of countries exploring cryptocurrencies as part of their economic strategies.

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The IMF in its Global Financial Stability Report spoke about the potential use of crypto in the Russian war against Ukraine. They have expressed that there is a threat poses to the stability of the existing financial systems. 

According to IMF, “There has been an increased level of “cryptoization” of the global financial system amid the Ukrainian invasion by Russia and the COVID-19 pandemic.

IMF Report By Block

The Block reported that although much of this is due to general trading activity, the IMF warned that it could be used to circumvent identification checks in capital flows. This is essential, a means of anonymously transacting overseas.

Although the US and UK regulators have asked crypto firms to be vigilant. However, people may use non-compliant exchanges, mixers or other means to evade sanctions.

In order to tackle crypto-specific risks, the IMF has advised international governments to implement the Financial Action Task Force standards. These standards include a travel rule for crypto assets that require exchanges to transmit sender and recipient identification information. Also implementation of additional laws and regulations on foreign exchange and capital flow management to cover crypto.

The report stated that “essential steps include developing a comprehensive, consistent, and coordinated regulatory approach to crypto assets, and applying it effectively to capital flow management measures; establishing international collaborative arrangements for implementation; addressing data gaps; and leveraging technology (“regtech and’ suptech”).”

Related: Problems Mounting For El Salvador After Legalizing Bitcoin

Other Aspect of the Report

The other aspect of the report spoke about decentralised finance (DeFi) space. It called the sector a new form of intermediary which poses a new set of legal questions that regulators need to tackle – importantly, how to regulate an entity that lacks a centralized point of contact.

“Regulation should focus on elements of the crypto ecosystem that enable DeFi, such as stablecoin issuers and centralized exchanges,” the report suggested. “Authorities should also encourage DeFi platforms to be subject to robust governance schemes, including industry codes and self-regulatory organizations. These entities could provide an effective conduit for regulatory oversight.”

In a similar report from January this year, the IMF showed concerns about the risks related to El Salvador’s issuance of bitcoin-backed bonds.

News reported that the IMF urged El Salvador to terminate bitcoin as legal tender as soon as possible.

The financial institution pointed to the high price volatility of Bitcoin as a major risk. Also, the report says that bitcoin should not be considered legal tender.

In June last year, El Salvador became the first country to adopt bitcoin as legal tender. To become a legal Tender El Salvador got 62 votes of approval out of 84. In September, Bitcoin officially was circulated in this country as legal tender.

Read More: Cryptoassets Use in Ukraine War under Scrutiny by Global Regulators: Reuters

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Recently, Bitcoin’s layer 2 scaling solution, the Lightning Network, has increased payment volume by over 400% as actual adoption grows.

One of the new reports highlights how the Lightning Network has grown in popularity to transfer digital assets quickly and efficiently around the globe. 

Recently, CNBC told the story of Alena Vororbiova who is a Ukrainian refugee who is seeking sanctuary in Poland. So, Vorobiova used Lightning to transfer $100 worth of Bitcoin from Miami, and he then withdrew it from an ATM in the equivalent Polish currency. This process was completed in the span of three minutes. 

That’s the high speed and low cost that has seen the transaction that has seen the layer-two scaling solution for the Bitcoin and grown 410% over the past year.

What the Report Has to Say? How is Chivo App Contributing?

According to the report published by Arcane Research, the number of payments that surfaced on the Lightning Network in the previous years doubled while the total value of those payments quadrupled.

Furthermore, the report warned that the widely-cited public metrics used to measure Lightning Network adoption. It is the most commonly total value locked (TVL) and underestimates the size of the network; they fail to count private channels and invisible nodes. 

Additionally, the metrics don’t reflect real-world Lightning Network usage. However, looking explicitly at payment volume paints a clearer picture of real Lightning adoption.

A partial explanation for the surge in payment is owing to the enormous increase in the number of users. These users are those who have recently gained access to the Lightning Network. This happened due to apps like El Salvador’s Chivo Wallet app and US-based payment application, CashApp.

Moreover, the report also found that roughly 50% of the value of all payments came from direct transactions between individuals that are Peer-to-Peer (P2P) transactions. Almost one-third of the payment value came from exchange withdrawals and deposits. However, the remaining 20% comes from purchases made through some form of the vendor.

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The results of such a strategy realized by the whole country of Central America are here.

Black Friday Sale in El Salvador

The recent most major market activity in the country was the Black Friday sale. This activity that the cryptocurrency market experienced amid the announcement of new pandemic measures in Europe. 

Moreover, due to the high chances of risks on the market, more traders have left markets and held edict currencies. In addition, Oil’s price drop started a worldwide correction on markets and then reflected on the crypto market. Also, major currencies and Bitcoin lost 15% in total approximately.

El Salvador’s president Nayib Bukele on Nov. 26, announced on Twitter that the country has bought more than 100 BTC. This dip is now already worth 6.8% as compared to the lowest point 3 days ago. 

Earlier, El Salvador also bought 150 new coins on the September Bitcoin dip. In those days, the price of the first cryptocurrency has dropped to $43,000 from the local peak of $52,000. 

Lastly, after this most recent dip bought by the country, they hold 800 Bitcoin. This holding is now worth about $45 million. The well-known cryptocurrency market critic, Peter Schiff, called the country’s president for making excessive risks for the country’s economy by following a trading strategy while managing the whole country’s funds.

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