El Salvador spends an additional $1.52 million to buy Bitcoin despite taking on 55% debt

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2022-07-01 17:54:41

The latest investment of the Central American country was announced by President Nayib Bukele this morning (July 1).

El Salvador buys another $1.52 million in Bitcoin despite a 55% loss

According to President Bukele, his country has just added to its treasury 80 BTC, purchased for $19,000. It is estimated that the total value of Bitcoin that the government has just collected is $1.52 million. After the bottom-fishing “lost” 500 BTC in May at $30,744 per BTC, El Salvador seems to have been more cautious.

In his tweet, President Bukele showed consistency with his claim that Bitcoin is the currency of the future.

“El Salvador today bought 80 BTC at 19,000 USD/dong.
Bitcoin is the future.
Thank you to those who sold at the bottom!”

The president shared his joy on his personal Twitter
The president shared his joy on his personal Twitter

Thus, up to now El Salvador is holding a total of 2,381 BTC. The average price per unit of Bitcoin is around $43,000. If calculated at the current Bitcoin price, the investment of the Bukele government is losing 55%, equivalent to a loss of more than $ 57 million on the capital of $ 104 million spent to hoard BTC.

In 2022, this is the third time El Salvador has made Bitcoin purchases, and the value in USD is significantly lower than the previous two.

El Salvador was the first country in the world to make Bitcoin legal tender since September last year. After that, many bold plans have been implemented by the country’s leaders such as using renewable energy to mine BTC, universalizing BTC wallets for people nationwide and scheduling the issuance of $ 1 billion in Bitcoin bonds to build “Bitcoin city” with many incentives. However, when the market crashed in 2022, the plan to deploy Bitcoin bonds was postponed indefinitely.

In mid-June, President Nayib Bukele advised Bitcoin investors to be optimistic about the prospects of the world’s largest cryptocurrency.

Last week, another large organization that had a similar move to El Salvador was MicroStrategy when it spent an additional $ 10 million to buy Bitcoin, despite suffering a heavy loss of $ 1.3 billion.

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