Contents
El Salvador, the Central American nation known for its embrace of cryptocurrency, has surprised observers with a significant transfer of Bitcoin (BTC) to a secure cold storage wallet.
A Big Chunk Goes into El Salvador Bitcoin Piggy Bank
President Nayib Bukele announced the move on X (formerly Twitter), revealing that Salvador had moved “a big chunk” – $400 million worth – of Bitcoin into a cold wallet stored “in a physical vault within our national territory.” Bukele even shared a photo of the wallet holding a significant amount – 5,689.68 BTC, valued at roughly $411 million at the time of writing.
We've decided to transfer a big chunk of our #Bitcoin to a cold wallet, and store that cold wallet in a physical vault within our national territory.
— Nayib Bukele (@nayibbukele) March 14, 2024
You can call it our first #Bitcoin piggy bank 🇸🇻
It's not much, but it's honest work 😂 pic.twitter.com/dqzedykxT1
This revelation significantly increases estimates of El Salvador’s Bitcoin holdings. Previously, public trackers placed the country’s Bitcoin reserves at less than 3,000 BTC, worth approximately $205 million. President Bukele’s announcement suggests Salvador has been accumulating Bitcoin through various means beyond direct purchases, hinting at methods like passport sales, business currency conversions, mining, and even revenue from government services.
A First: Transparency on El Salvador’s Bitcoin Treasury
This move also marks a shift in transparency for Salvador’s Bitcoin strategy. Previously, President Bukele relied solely on social media to announce Bitcoin purchases, offering little insight into the size of the national holdings. Now, by linking the Bitcoin treasury to a specific address, El Salvador provides a clearer picture of its digital asset reserves.
El Salvador’s pioneering stance on Bitcoin began in September 2021 when it became the first country to adopt Bitcoin as legal tender. Back then, the price per Bitcoin hovered around $52,000. As of today, Bitcoin trades north of $72,000, showcasing a potential profit for El Salvador based on their average purchase price.
The transfer of Bitcoin to cold storage occurred over the past week, with the majority arriving on Thursday. Interestingly, data from Arkham Intelligence suggests that a large portion of the Bitcoin in the wallet originated from Bitfinex, a major cryptocurrency exchange.
El Salvador’s Bold Bitcoin Bet Continues
El Salvador’s recent move to secure a significant amount of Bitcoin in cold storage raises questions and sparks discussions. The transparency regarding the specific address offers a more comprehensive view of the country’s Bitcoin holdings. With Bitcoin prices fluctuating, it will be interesting to see how El Salvador’s strategy evolves and how this bold experiment with cryptocurrency as legal tender unfolds in the long run.
