El Salvador Now Holds $562 Million Worth of Bitcoin (BTC) After Purchasing 1 BTC

Since adopting Bitcoin as a legal tender back in 2021, El Salvador has pursued a consistent strategy of accumulating Bitcoin (BTC).

El Salvador has steadily pursued a strategy of accumulating Bitcoin (BTC) since adopting it as a legal tender in 2021.

This strategy, which has largely paid off as the asset's price has soared, continued on Thursday. Recent data showed that El Salvador purchased an additional 1 BTC on Dec. 29, bringing the country's total holdings to above the 6,000 BTC mark. This substantial stash makes El Salvador the sixth country to hold 6,000 BTC or more.

El Salvador's Bitcoin Holdings Now Worth $562 Million

According to the National Bitcoin Office of El Salvador's portfolio tracker, El Salvador's BTC holdings now stand at 6,000.77 Bitcoin, which is currently valued at $562.3 million following its latest purchase.

El Salvador holds the sixth most Bitcoin among nation-states, after the United States, China, the United Kingdom, Ukraine, and Bhutan, respectively, according to the data.

While El Salvador typically adds one Bitcoin per day, it acquired 11 BTC, or $1 million, a day after striking a $1.3 billion deal with the International Monetary Fund (IMF) that stipulated changes to its controversial Bitcoin Law in return.

In September 2021, El Salvador became the first country to adopt Bitcoin as a legal tender. El Salvador's National Bitcoin Office Director Stacy Herbert announced in a Dec. 19 post that the small Latin American nation may continue to purchase Bitcoin at an “accelerated pace” going forward.

Herbert also disclosed that the Salvadoran government would sell or phase out its government-sponsored wallet, Chivo, through which authorities gifted citizens $30 of free BTC back in 2021.

Has Bukele's Big BTC Bet Paid Off?

Since making Bitcoin legal tender, President Nayib Bukele has been a staunch advocate for crypto adoption. His administration has launched several projects, including a Bitcoin mining operation powered by geothermal energy from a volcano and the introduction of Bitcoin-backed volcano bonds. El Salvador also offers a so-called “freedom visa” for crypto enthusiasts.

El Salvador reportedly bought its 6,000 BTC at an average price of $45,465; it’s now worth $562 million, which means the country is sitting on over $157 million in profits—a roughly 108% gain on its initial investment.

While it remains to be seen whether other nation-states will follow in El Salvador's footsteps and begin stockpiling Bitcoin in the near future, one thing is clear: There's a growing interest among nation-states in holding the world's largest cryptocurrency as a strategic reserve asset.