El Salvador’s Expanding Bitcoin Strategy: What’s Behind Its Growing Reserves?
El Salvador, the first country to adopt Bitcoin as legal tender, continues to ramp up its Bitcoin purchases. Originally, the country set a goal of buying just 1 Bitcoin per day. However, it has far surpassed this target, making larger and more frequent Bitcoin acquisitions.
Over the past week, El Salvador added 21 BTC to its holdings. According to data from the country’s National Bitcoin Office (ONBTC), the total Bitcoin reserves of El Salvador have now reached an impressive 6,068 BTC, valued at around $592 million. This milestone showcases the country’s ongoing commitment to Bitcoin as part of its financial strategy.
On February 4, 2025, El Salvador made two notable Bitcoin purchases: 11 BTC were bought for an average price of $101,816 per Bitcoin, and 1 BTC was acquired at $99,114. This brings the total number of Bitcoin added in the last month to 60 BTC, further solidifying the country’s aggressive accumulation strategy.
El Salvador has stacked 21 BTC this week!
— The Bitcoin Office (@bitcoinofficesv) February 4, 2025
Total SBR Holdings: 6,068.18 BTC
Total Added Today: +1 BTC
Total Added Past 7 Days: +21 BTC
Total Added Past 30 Days: +60 BTC
The first Strategic Bitcoin Reserve in the world keeps growing and so El… pic.twitter.com/iz2x9CGbuu
Why Is El Salvador Increasing Its Bitcoin Holdings?
While El Salvador’s original goal was to purchase 1 Bitcoin per day, the country’s strategy has been evolving rapidly. By increasing the volume of its Bitcoin purchases, El Salvador is positioning itself to benefit from Bitcoin auctions held by the U.S. government, which typically offer seized Bitcoin at lower-than-market prices. This opportunity likely plays a significant role in the country’s decision to scale up its Bitcoin acquisitions in a shorter time frame.
This increase in Bitcoin purchases follows a significant deal between El Salvador and the International Monetary Fund (IMF), which involved a $1.4 billion loan. As part of the agreement, El Salvador agreed to reduce certain Bitcoin-related policies, such as making Bitcoin acceptance optional for businesses and winding down the government-backed Chivo wallet. Despite these adjustments, El Salvador’s commitment to growing its Bitcoin reserves remains strong.
International Attention: Other Countries Eyeing Bitcoin Reserves
El Salvador’s Bitcoin strategy has caught the attention of other nations. Countries such as Brazil, the Czech Republic, and Poland are now considering similar moves, exploring the possibility of building their own Bitcoin reserves. The United States, in particular, is closely watching El Salvador’s experiment with Bitcoin and its potential impact on the global financial system.
El Salvador’s aggressive Bitcoin accumulation and its continued integration of Bitcoin into its financial system demonstrate the country’s dedication to being at the forefront of cryptocurrency adoption. While the government navigates its relationship with the IMF, it remains committed to strengthening its Bitcoin reserves, and other nations are closely following its lead. Only time will tell how this bold strategy will impact El Salvador’s economy and influence global Bitcoin trends.
