El Salvador adds 20 BTC to its reserves in just one week, further expanding its Bitcoin holdings

El Salvador’s commitment to Bitcoin has remained strong, and the country is continuing its accelerated accumulation of the cryptocurrency. In the past week alone, El Salvador added more than 20 BTC to its reserves, demonstrating its ongoing investment in Bitcoin despite the volatility in the crypto market. According to the Bitcoin Office of El Salvador, on February 4, the government acquired 12 BTC across two separate transactions. The first purchase was for 11 BTC, which cost the country around $1.1 million, at an average price of $101,816 per BTC. Later on the same day, it added an additional 1 BTC, purchasing it for $99,114.

With these latest acquisitions, El Salvador’s total Bitcoin holdings now stand at 6,068 BTC, which is valued at more than $592 million at current prices. This recent buying spree follows a broader trend, as the country has been consistently adding Bitcoin to its reserves. Over the past month alone, El Salvador has purchased 60 additional BTC, further solidifying its position as a major Bitcoin holder among sovereign nations.

This accumulation strategy comes during a time of market volatility, particularly when Bitcoin has struggled to stay above the $100,000 threshold. For instance, on February 4, Bitcoin’s price fell to $98,361, according to CoinGecko data. Despite this fluctuation, El Salvador has continued to buy, further underscoring the country’s belief in the long-term potential of Bitcoin, particularly as a store of value and a hedge against economic instability.

The country’s aggressive Bitcoin accumulation began back in 2022 under the leadership of President Nayib Bukele, who made history by officially adopting Bitcoin as legal tender. Initially, the government embarked on a more methodical strategy, acquiring 1 Bitcoin per day as part of its “1 Bitcoin a day” program. However, in recent months, El Salvador has moved away from this steady pace and has increased its Bitcoin buying activity significantly. This shift was first publicly mentioned by Stacy Herbert, a prominent figure associated with El Salvador’s Bitcoin strategy, in December 2024.

The acceleration of Bitcoin purchases comes at a time when El Salvador faced pressure from international institutions. In particular, the country negotiated a $1.4 billion loan with the International Monetary Fund (IMF) in late 2024. This deal came with stipulations that required El Salvador to scale back some of its Bitcoin-related policies. As part of the agreement, Bitcoin acceptance was made optional for businesses, and the state-backed Chivo wallet—once a centerpiece of the country’s Bitcoin push—began to wind down.

Despite these adjustments, El Salvador remains deeply committed to its Bitcoin strategy and continues to add Bitcoin to its national reserves. The government views Bitcoin not just as a speculative investment, but as a potential driver of financial inclusion and economic stability. As such, it remains one of the most Bitcoin-forward nations globally.

Moreover, El Salvador’s Bitcoin strategy has had a ripple effect on other countries, some of which are now looking to emulate its approach. For example, the United States has been considering its own strategy for Bitcoin reserves, while nations like Brazil, the Czech Republic, and Poland have explored the possibility of building their own Bitcoin holdings. El Salvador’s example has certainly set a precedent, sparking global conversations about how nations can integrate Bitcoin into their financial systems and reserves.

As other countries consider the example set by El Salvador, the small Central American nation’s influence in the world of cryptocurrency continues to grow. Its Bitcoin strategy, while not without controversy, positions El Salvador as a leader in the adoption of decentralized digital currency at the national level. Whether this approach will continue to prove successful in the long term remains to be seen, but for now, El Salvador’s Bitcoin acquisition strategy is a noteworthy chapter in the ongoing evolution of the global cryptocurrency landscape.