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El Salvador has established itself as a global Bitcoin leader by becoming the sixth nation to possess over 6,000 BTC.
On December 29, the country added another Bitcoin to its holdings, raising its total to 6,000.77 BTC, which is approximately valued at $569.3 million, according to the National Bitcoin Office’s portfolio tracker.
The nation’s Bitcoin investment has increased by 108.02%, with an average purchase price of $45,450 per coin, based on the portfolio tracker maintained by President Nayib Bukele.
El Salvador Advances Bitcoin Initiative
El Salvador commenced its Bitcoin journey on September 6, 2021, acquiring its initial 200 BTC just before becoming the first country to recognize Bitcoin as legal tender.
Among countries with substantial Bitcoin reserves, El Salvador ranks sixth, following the USA, China, the UK, Ukraine, and Bhutan, according to BitBo’s Bitcoin Treasuries data.
Despite facing global criticism, including from the International Monetary Fund (IMF), the Bukele administration remains steadfast in its Bitcoin strategy.
Significant news for #bitcoin enthusiasts
El Salvador has become the sixth nation to currently hold more than 6,000 Bitcoin (BTC). pic.twitter.com/VzWzu7X88N— Whale Catcher
(@Whale__Catcher) December 29, 2024
(@Whale__Catcher) December 29, 2024Importantly, El Salvador’s National Bitcoin Office Director, Stacy Herbert, noted in a December 19 social media post that the country might accelerate its Bitcoin purchases.
The government has also stated it has no intention of selling its holdings, reaffirming that Bitcoin is central to its economic strategy.
The Chivo wallet, El Salvador’s official Bitcoin wallet, is expected to be sold or phased out, with private-sector wallets anticipated to take its place.
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Meanwhile, the $1.4 billion agreement with the IMF is still awaiting approval. The negotiations, complicated by the government’s Bitcoin policies, could signify a turning point after four years of discussions.
US States Explore Adding Bitcoin To Reserves
Ohio has emerged as the latest US state to consider incorporating Bitcoin into its treasury reserves, following the introduction of a new bill by House Republican leader Derek Merrin.
This initiative reflects recent actions by Texas and Pennsylvania to establish Bitcoin reserves.
On December 12, 2024, Texas Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act, which suggests that the state comptroller hold Bitcoin as a reserve asset for a minimum of five years.
Pennsylvania took a similar step in November, with Representative Mike Cabell proposing a bill to allow its treasury to allocate up to 10% of its balance sheet in Bitcoin, citing the asset’s potential to hedge against economic uncertainty.
Additionally, corporate Bitcoin holders such as MicroStrategy and Metaplanet have increased their Bitcoin holdings.
MARA Holdings (MARA) has also acquired 11,774 BTC in its latest purchase, the company announced on X on December 10.
Similarly, Riot Platforms, a Bitcoin mining firm, revealed plans to raise $500 million through a private bond offering to further enhance its Bitcoin reserves.
However, the US government is not anticipated to purchase Bitcoin in 2025, according to Galaxy Digital’s head of research, Alex Thorn.
In a report released on December 27, Thorn predicted that while discussions regarding a Bitcoin reserve policy may advance, the government will focus on managing its existing Bitcoin inventory rather than acquiring additional assets.
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