El Salvador will continue to buy bitcoin daily until it “can’t afford it.”

Summary:

-El Salvador’s President Nayib Bukele reaffirmed the country’s commitment to buy one bitcoin a day. , despite initial criticism.

-This plan was announced in November 2022 as part of a dollar-cost averaging program, and as the price of bitcoin soared, the initiative proved successful.

-El Salvador’s total bitcoin holdings, including purchases through various channels, now stands at 5,690 pieces worth $3.94 billion.

El Salvador’s President Nayib Bukele reiterated the country’s commitment to purchasing one bitcoin a day.

Bukele made public the transaction receipts for the day’s purchases, reflecting the country’s continued commitment to the program.

One Bitcoin a Day Proves Successful  Bitcoin Miner

In November 2022, Bukele announced El Salvador’s Dollar Cost Averaging (DCA) program. At the time, he pledged to purchase 1 Bitcoin per day as part of the country’s policy of supporting cryptocurrencies.

Despite being criticized by several international financial organizations due to the bearish performance of the crypto market at the time, the decision has proven to be a strategic success. Bitcoin’s recent appreciation has generated significant unrealized profits for El Salvador.

As a result, President Bukele confirmed that El Salvador will continue its bitcoin DCA strategy indefinitely. Data shows that the country has spent over $15 million acquiring 485 BTC through this method, with an average purchase price of $30,985. To date, the value of this Bitcoin alone is over $33 million.Bitmain Miner

Bukele said, “The one Bitcoin a day program will continue until Bitcoin becomes unaffordable with fiat currency.”

El Salvador’s Bitcoin Portfolio｜Source: nayib tracker

It’s worth noting that El Salvador’s total holdings are 5,690 BTC worth $387.88 million when taking into account its previous bitcoin purchases as well as bitcoin revenues earned through other sources such as citizenship programs.

The Whale Continues to Accumulate BTC

Bukele’s comments reflect the prevailing sentiment. Over the past few weeks, Bitcoin whales have been eager to increase their holdings.Santiment’s on-chain data shows that wallets holding between 10 and 10,000 BTC have aggressively amassed 154,160 BTC valued at $10.6 billion over the past five weeks.

These purchases have significantly fueled Bitcoin’s recent price spike.

Santiment said, “Key stakeholders in Bitcoin have played a major role in the second wave of total market value growth over the past five weeks. Since February 4, wallets holding 10-10K BTC have accumulated 154.16 million tokens (0.665% of supply) and are now worth over $10.9 billion.”

Bitcoin Whale Accumulation | Source: Santiment

During this period, MicroStrategy went through a debt-funded strategy to purchase over 12,000 BTC for $821 million.Despite this, the company is actively seeking to raise up to $600 million through convertible bond offerings to expand its existing reserve of 205,000 BTC.