Overall, the value of El Salvador’s investment now stands at $66 million — and it’s already made some money.
El Salvador has invested another 420 BTC — taking the total it holds in reserve to 1,120 BTC.
President Nayib Bukele announced that the country had “bought the dip” after Bitcoin retraced from all-time highs and fell below $60,000.
Of course, the number 420 itself has a certain type of notoriety… not least because it’s a nod to cannabis use.
On Twitter, the president’s announcement suggested that he was itching to increase the country’s exposure to Bitcoin. He wrote:
“It was a long wait, but worth it.”
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Crunching the Numbers
Overall, the value of El Salvador’s investment now stands at $66 million — and it’s already made some money.
The country adopted Bitcoin as legal tender on Sept. 7, and made a total of four crypto purchases last month.
Let’s break down how this panned out.
A total of 400 BTC was purchased on Sept. 6 — in two batches of 200 BTC — at a per-coin price of $51,353 and $51,596 respectively.
Another purchase followed one day later, when the Bitcoin Law came into force, with 150 BTC snapped up for $52,172 each.
And on Sept. 19, when Bitcoin plunged related to concerns over China’s Evergrande purchase, another 150 BTC was bought for $45,752 each.
In total, buying the 1,120 BTC is estimated to have cost around $60 million.
But at current prices, rough estimates suggest that the country is sitting on rather handsome profits of $6 million.
Earlier in October, Bukele said that he plans to build a pet clinic with some of the country’s crypto earnings.
Unfortunately, not everyone was on board with Bukele’s plans to build a swish new hospital for dogs and cats — and said medical facilities for humans should be prioritized instead.
