El Salvador Expands Bitcoin Reserve by 162 Coins as Cold Wallet Acquires One BTC Daily

A cold wallet believed to be controlled by El Salvador's government has been acquiring one Bitcoin daily since March 16.

A cold wallet, which is believed to be controlled by the government of El Salvador, has been adding one Bitcoin to its reserves every day since March 16. This brings the total addition to the country’s Bitcoin reserves to 162 coins.

Presently, the wallet, which has been linked to the El Salvador government by blockchain analytics firm Arkham Intelligence, holds 5,851 Bitcoin, valued at about $356.4 million, at the time of writing.

The wallet’s inflow chart shows a daily addition of one Bitcoin since March 16. The latest purchase, which was a full BTC, was made just a few hours ago, for $60,500. However, there have been several smaller transactions where the wallet acquired fractions of Bitcoin for less than $100.

Crypto analyst EmberCN has calculated the average acquisition cost of El Salvador’s Bitcoin holdings at around $44,835, which puts the country at an unrealized gain of $93.45 million.

The Salvadoran government is buying Bitcoin daily, as part of President Bukele’s goal to buy one a day until the country can no longer "afford" it.

El Salvador’s Largest Bitcoin Transfer to Cold Storage

The initiative began with a large transfer of 5,689 BTC to a cold storage wallet, which was valued at about $386 million at the time. President Bukele has called this wallet the nation’s first “Bitcoin piggy bank.”

The Bukele administration also recently suggested using cryptocurrency in trade talks with Russia, as a way to get around the economic sanctions imposed on the country by the U.S. and allies over the ongoing conflict between Russia and Ukraine.

El Salvador, which has adopted the U.S. dollar as its official currency, faces challenges in trading with Russia, which has been hit with heavy restrictions on accessing USD.

El Salvador Improves Transparency of Bitcoin Holdings

The government of El Salvador has added a new detail to its efforts to boost transparency over its Bitcoin holdings and enable public auditing of these holdings, by using mempool space tool. This move ensures accountability for the nation's cryptocurrency investments and strengthens public trust.

After making Bitcoin a legal tender in 2021, El Salvador has also ventured into mining Bitcoin using the country’s vast geothermal energy, generated by volcanoes. The nation has seen success with 474 Bitcoin mined, to the tune of about $29 million.

President Nayib Bukele, who was recently re-elected for a second five-year term after a landslide victory in February, favors this eco-friendly mining method, which leverages El Salvador’s natural resources and aligns with its goal of integrating advanced technologies with renewable energy sources. Despite its novelty, this mining operation still forms a small part of El Salvador's overall Bitcoin strategy.

Meanwhile, Bitcoin’s price has seen a slight decrease in the past 24 hours, down 0.7%, and up 5.1% over the last week.

Featured image from Dall-e, a chart from Tradingview.com.

The above is the detailed content of El Salvador Expands Bitcoin Reserve by 162 Coins as Cold Wallet Acquires One BTC Daily. For more information, please follow other related articles on the PHP Chinese website!