El Salvador Buys Dip Again and Now Owns 1,120 BTC
Crypto News

El Salvador Buys Dip Again and Now Owns 1,120 BTC

Created 6mo ago, last updated 6mo ago

Overall, the value of El Salvador’s investment now stands at $66 million — and it’s already made some money.

El Salvador Buys Dip Again and Now Owns 1,120 BTC

Table of Contents

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.” 

Listen to the CoinMarketRecap podcast on Apple PodcastsSpotify and Google Podcasts

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.

6 people liked this article