- El Salvador has taken advantage of the recent BTC price dip to bolster its holdings of the asset.
- The President announced via Twitter that the country had added 420 more BTC and has already started reaping the rewards of the investment.
- Bitcoin fell below $60K for the first time in nearly 10 days and just started springing back above $60k.
El Salvador puts its foot on the pedal to increase the size of its BTC holdings. The latest acquisition means the country has purchased 1,120 BTC in total.
The Dip Is The Signal To Buy
El Salvador’s President, Nayib Bukele took to Twitter to announce the country’s latest Bitcoin purchase. The purchase saw 420 BTC added to the pioneering country’s stash amid a fall in asset prices. At the time of the announcement, Bitcoin was trading at around the $58K mark, meaning the value of the buy hovers around $24.3 million.
“It was a long wait, but worth it. We just bought the dip! 420 new Bitcoin,” President Bukele tweeted on Wednesday.
The purchase is coming on the heels of a decline in prices as Bitcoin fell below $60,000 for the first time in a week. Buying the dip is El Salvador’s modus operandi with the country seizing previous dips to beef up its BTC plans. The country opened its account by purchasing 700 BTC in installments within 2 weeks of its adoption of the asset as legal tender with the President taking to Twitter to thank the IMF for the dip in prices. The recent purchase of 420 BTC brings the country’s total holdings to 1,120 BTC.
A few hours after his first tweet, President Bukele added that the country had already begun carving out a profit from the purchase. “Hahaha we’re already making a profit off the bitcoin we just bought,” he said as the prices embarked on a slow upward trajectory.
How Does El Salvador Make A Profit?
From its initial purchases when Bitcoin was trading around $40K, it is crystal clear that the Bitcoin business has turned a nice profit for the country. Presently, the value of the holdings is roughly $64.9 million and so far, buying the dip has worked out nicely for El Salvador.
“How do we make a profit if 1 BTC = 1 BTC? We have a trust fund accounted in USD, but the trust is funded by both USD and BTC. When the BTC part revalues in comparison to the accounting currency (USD), we are able to withdraw some USD and leave the trust with the same total,” explains President Bukele.
El Salvador’s Congress approved the creation of a $150 million bitcoin trust before the coming into effect of the Bitcoin law to improve adoption rates. On October 10, President Bukele announced that the country will invest a portion of its BTC profits to build an ultramodern veterinary hospital in the capital.