El Salvador Reaches 6,000 Bitcoin Milestone, Valued at $570M

After 39 months of making consistent purchases, El Salvador has reached a milestone of 6,000 Bitcoins in its reserves.

El Salvador has now acquired 6,000 Bitcoins, placing it sixth among government Bitcoin holders globally.

After 39 months of consistent purchases, El Salvador has now reached a milestone with 6,000 Bitcoins in its reserves. This ranks the country sixth among the top government holders of Bitcoin globally, with its reserves now valued at approximately $570 million.

Much of this value was added this past year, as Bitcoin grew from $45,000 to over $100,000.

“Thank goodness, our country’s Bitcoin reserves are now worth 127% more than we paid for them — an increase of more than $344 million,” Bukele wrote.

El Salvador’s Bitcoin reserves are now reportedly 127% more than its initial acquisition costs.

El Salvador began accepting Bitcoin as a legal tender in September 2021, making it the first country to adopt the cryptocurrency. Since then, several other nations and states have shown interest in similar strategies.

Things could really start to accelerate next year, with other nations and states considering similar strategies.

El Salvador’s Bitcoin adoption strategy has largely centered around a simple approach: buying one Bitcoin every day. However, the country made a few larger-than-usual purchases recently, including an 11 Bitcoin buy on December 20 and again just two days later.

These coincided with reports of El Salvador securing a $1.4 billion loan agreement with the International Monetary Fund.

The IMF deal required the country to make Bitcoin acceptance by businesses voluntary rather than mandatory. This adjustment was intended to address the IMF’s concerns about potential financial risks tied to Bitcoin adoption.

Galaxy Research predicts that at least five nation-states will add Bitcoin to their reserves by 2025, driven by diverse motivations.

In a recent analysis, Galaxy Research predicts that at least five nation-states will add Bitcoin to their reserves by 2025. This trend is expected to be driven by diverse motivations, including portfolio diversification, trade settlement, and strategic competition.

President-elect Donald Trump has reportedly floated the idea of creating a national Bitcoin reserve, although analysts suggest that the US may initially utilize Bitcoin already held through law enforcement seizures.

At the same time, states like Florida and Pennsylvania are also exploring the possibility of establishing their own strategic Bitcoin reserves.

Crypto market movers are keeping a close eye on these developments, as they could significantly impact the broader cryptocurrency landscape. Stay tuned for the latest updates.