The President of El Salvador, Nayib Bukele tweeted earlier yesterday that his government had purchased an additional 420 Bitcoin worth nearly $25 million, bringing the total amount of the nation’s stash to 1,120 BTC worth about $87.4 million.
The government of El Salvador made the best out of Bitcoin’s latest dip by purchasing an additional amount of 420 BTC worth approx. $24.5 million, according to current prices. The latest purchase comes more than a month after its last purchase of 150 BTC made on Sept. 20.
Over the past two months, the country’s president ordered four BTC purchases for the country’s coffers. According to Disruptiva magazine, El Salvador bought 200 BTC at $51,300 on September 6, then another batch of 200 BTC at $51,500. A day later, it purchased 150 BTC at $52,000. On September 19, the country again bought the dip for another 150 BTC at $45,700.
With the latest purchase, Bukele has increased El Salvador's Bitcoin reserves to 1,120 BTC, at an average price of $53,324.29. With Bitcoin at nearly $59,000, the country made an unrealized return on its investment.
El Salvador became the first country in the world to adopt bitcoin as legal tender alongside the U.S dollar. The move was made to lower the cost of remittances from Salvadoran migrants living overseas as traditional banks and other financial institutions usually charge hefty fees to process the money transfers.
The country’s economy is heavily dependent on around $6 billion in remittances sent home each year, or about a quarter of gross domestic product, around one-fifth of households dependent on the cash infusions.
At the time of writing, Bitcoin is trading at around $58,791 down 4.2% from the past 24 hours. The leading cryptocurrency has dropped down since hitting a record high of $66,976 earlier this month but is still up by about 20% since September 7.