The President of El Salvador, Nayib Bukele, said that the government took advantage of the local drawdown of the exchange rate to increase reserves in Bitcoin (BTC). The State Fund has acquired an additional 420 BTC.
Thus, the amount of cryptocurrency purchased is very symbolic. The number 420 is associated with the culture of cannabis use.
Bukele stressed that the authorities have already received a certain profit from investments in the first cryptocurrency. Since Bitcoins and US dollars are stored on the balance sheet of the state Bitcoin trust. Against the background of the growth of digital gold quotations, a surplus arises that the managers of the structure can withdraw from the accounts.
The total amount of BTC is 1120
Earlier in October, the President of El Salvador announced that the country would use part of this profit to build a veterinary clinic.
“We will start building a veterinary clinic using the profits from BTC. By the way, we do not sell Bitcoin, but use the dollar part of the trust. Since the cryptocurrency stored on its balance sheet is now worth more than at the time of creation,” Bukele wrote.
Taking into account the new investment, there is 1120 BTC on the balance of the state fund (~$68.76 million at the exchange rate at the time of writing).
Making Bitcoin legal tender
El Salvador bought two batches of 200 BTC on September 6 this year. Then bought another batch of 150 BTC the next day; making it the world’s first country to make Bitcoin legal tender. El Salvador purchased another 150 BTC on September 19, bringing the country’s total holdings to 700 BTC.
Other analysts, on the other hand, were less enthusiastic about the new purchase; raising concerns about the country’s Bitcoin holdings’ security.