In a coordinated effort to expand its foreign reserves, El Salvador took notable steps on Thursday by purchasing both gold and Bitcoin, reaffirming its unique strategy of simultaneously holding positions in traditional and digital assets.
The Central Reserve Bank of El Salvador announced it had procured 9,298 ounces of gold, amounting to $50 million in value. This latest addition raised the nation's total gold reserves to 67,403 ounces, with an aggregate value now approximating $360 million. The central bank described this acquisition as a strengthening of its "long-term equity" position, intended to sustain a "prudent balance" in the composition of its foreign reserves.
President Nayib Bukele publicly acknowledged the move via social media, characterizing the purchase as capitalizing on a market dip, stating, "We just bought this other dip." This statement underscores the government's proactive approach to asset acquisition amid price fluctuations.
Parallel to the gold buying, El Salvador continued its cryptocurrency accumulation. Data from the National Bitcoin Office revealed the addition of 1 Bitcoin on Thursday, and a total of 7 Bitcoins purchased over the past week. These purchases align with the country’s policy to acquire approximately one Bitcoin daily.
Currently, El Salvador's Bitcoin holdings stand at 7,547.37 BTC, valued at roughly $624.24 million based on prevailing prices. According to available data, the country ranks as the fifth-largest governmental holder of Bitcoin globally, trailing only the United States, China, and the United Kingdom.
Adopting Bitcoin as legal tender since 2021, El Salvador remains steadfast in accumulating the cryptocurrency regardless of its price volatility or broader market uncertainties. Although the International Monetary Fund had requested a halt to public sector Bitcoin purchases as a condition of a $1.4 billion funding arrangement earlier this year, El Salvador adjusted its Bitcoin legislation to make acceptance voluntary but sustained its accumulation policy.
The acquisitions come at a time when both assets experienced downward price movements. Spot gold witnessed a decline of nearly 4%, retracing gains from prior rallies to settle at $5,158.54 per ounce. Similarly, Bitcoin experienced a notable drop, falling below $82,000, a level not seen since April. Data shows Bitcoin trading at $82,387 at the time of reporting, down 6.56% over 24 hours.
Despite these price contractions, El Salvador's actions highlight a deliberate strategy to acquire more assets during periods of market weakness, reflecting confidence in the long-term value of both gold and Bitcoin as components of its reserve portfolio.