El Salvador Increases Bitcoin Holdings by 162 Coins

El Salvador has been actively increasing its Bitcoin reserves, with a government-owned cold wallet reportedly purchasing one Bitcoin per day since March 16. These acquisitions have added 162 coins to the nation’s Bitcoin holdings, now totaling 5,851 BTC, according to data from blockchain analytics platform Arkham Intelligence. The market value of these holdings is approximately $356.4 million.

The wallet’s transaction history indicates a consistent pattern of daily Bitcoin purchases, with the most recent transaction occurring just hours ago at a cost of $60,500. On a few occasions, the wallet has made minor BTC purchases valued at less than $100.

Crypto analyst EmberCN estimates the average acquisition cost of El Salvador’s Bitcoin at around $44,835 per coin, which implies a floating profit of $93.45 million for the country. These purchases align with President Nayib Bukele’s commitment to buy one Bitcoin every day until it becomes “unaffordable.” The initiative began with the transfer of 5,689 BTC into the cold storage wallet, worth $386 million at that time. Bukele referred to this wallet as the country’s inaugural “Bitcoin piggy bank.”

To enhance transparency in its cryptocurrency holdings, El Salvador has implemented a mempool space, allowing the public to audit its Bitcoin reserves. Additionally, the Bukele administration has proposed utilizing cryptocurrency for trade with Russia, aiming to bypass sanctions imposed by the United States and its allies due to Russia’s ongoing conflict with Ukraine. As El Salvador recognizes the U.S. dollar as its official currency, engaging in trade with Russia has been complicated due to the sanctions limiting Russia’s access to USD.

Meanwhile, Bitcoin has seen a 0.8% increase over the past 24 hours and a 5.1% rise over the past week. Its market capitalization now exceeds $1.2 trillion, accounting for more than 53% of the entire cryptocurrency market’s value.

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