El Salvador, renowned for its progressive approach towards cryptocurrency adoption, has disclosed a substantial addition to its Bitcoin holdings, surpassing previous estimations. President Nayib Bukele announced the transfer of over 5,000 Bitcoins (BTC) into a cold wallet this week, significantly boosting the country’s known reserves of the digital asset.
The move, amounting to approximately $400 million in BTC, marks a significant expansion of El Salvador’s Bitcoin treasury. President Bukele described this development as the establishment of their inaugural “#Bitcoin piggy bank,” underscoring the nation’s commitment to integrating cryptocurrencies into its financial framework. The cold wallet, safeguarded within a physical vault within the country’s borders, now holds 5,689.68 BTC, valued at $411 million based on current market prices.
This revelation substantially revises previous assessments of El Salvador’s Bitcoin holdings. Public trackers had previously estimated the nation’s reserves at less than 3,000 BTC ($205 million). President Bukele hinted earlier in the week that the country had acquired Bitcoin through various means, including the sale of passports, currency conversions for businesses, mining activities, and government services.
President Bukele’s disclosure marks the first instance of linking El Salvador’s holdings to a specific address, departing from previous updates primarily shared via social media. The Central American nation made headlines in September 2021 by becoming the first country to incorporate Bitcoin into its national treasury, when prices hovered around $52,000 per coin. Thursday’s market saw BTC prices surpass $72,000, with fluctuations ranging between $68,000 and $73,000 over the past 24 hours.
The recent influx of Bitcoins into El Salvador’s cold wallet occurred predominantly from Bitfinex, according to insights provided by Arkham Intelligence. While the transfers spanned the past week, the majority were executed on Thursday, underscoring the nation’s proactive stance in bolstering its cryptocurrency reserves.
