El Salvador, the world’s first country to adopt bitcoin (BTC) as legal tender, has announced adding 11 BTC, worth approximately over $1.1 million, to its national reserve.
The latest addition brings the country’s total BTC holdings to over 6,043 BTC, valued at $640 million. The acquisition is a significant part of El Salvador’s ongoing strategy to strengthen its economic foundation by adopting crypto.
A $1M BTC Purchase
The announcement comes as the country spent roughly $1 million to acquire the crypto asset on December 20, 2024. During this time, bitcoin experienced a significant price crash, which led investors to sell off their holdings in fear. While many crypto investors and traders cashed out their profits, El Salvador saw the dip as an opportunity to buy more BTC, cementing its position as the world’s first country to adopt the asset as its primary reserve asset.
Following the purchase, El Salvador noted that it would continue buying more BTC to expand its national reserve. The decision represents the Central American country’s commitment to integrating crypto into its financial ecosystem despite the volatility that has characterized the crypto market.
El Salvador Leads The Way
Over the years, El Salvador has become known for its dedication to acquiring BTC. The Central American nation started purchasing in 2021, paving the way for other countries, states, and institutions to emulate.
The country’s Bitcoin reserve is crucial to its broader economic strategy. By accumulating bitcoin at various price points, El Salvador aims to position itself as a leader in the global crypto ecosystem.
In line with BTC reserves, 2024 has been a rollercoaster, with institutions creating their BTC reserves. On November 15, 2024, the House of Representatives of Pennsylvania made a strategic move to support crypto adoption by passing a law to add bitcoin to the state balance sheet as a reserve asset. The bill aimed to establish a strategic Bitcoin reserve, potentially boosting America’s standing as a crypto hub.
Similarly, an Ohio lawmaker also introduced a bill that could position the state to embrace BTC. The proposed legislation seeks to establish a state Bitcoin reserve, allowing Ohio to purchase and hold bitcoin as part of its financial assets.
BTC Hits New High
Meanwhile, amid the latest purchase, BTC reached a new all-time high (ATH) of $109,000 before declining. As of the time of writing, the crypto asset was trading at over $107,700, up 2.27% in the last 24 hours.
Before the new ATH, BTC hovered around the $90,000-$95,000 price level due to market correction and other influences. However, the asset has risen to a significant peak, profiting investors.
