Nayib Bukele – President of El Salvador – recently announced that his country has purchased another 100 Bitcoin. That’s about $5.4 million worth of the primary cryptocurrency, at today’s prices.
As always, the “CEO” of El Salvador (as reads his bio) casually announced the purchase in a tweet on Friday. Despite Bitcoin’s bearish slump this week, the president has not second-guessed his investment. Instead, he took it as a chance to stack sats.
“El Salvador just bought the dip. 100 extra coins acquired with a discount,” reads the tweet.
Last month, the president announced a much larger purchase of 420 Bitcoin, after its dollar price descended into the lower sixty thousand range. Combined with the recent purchase, El Salvador now holds well over 1000 Bitcoin.
As always, notorious anti-Bitcoin gold bug Peter Schiff was not impressed. Responding to Bukele, he said the purchase was “unfortunate” for the people of El Salvador, and suspects that the nation will eventually cut its losses and sell its Bitcoin.
However, El Salvador has shown every intention to HODL until now. On the day it became legal tender in the country, the president announced multiple consecutive Bitcoin investments, even as its price rapidly fell. Then, when the price soared last month, El Salvador used its profits to build a pet hospital – but only by digging into the dollars within its Bitcoin fund.
Days ago, Bukele announced El Salvador’s plans to build a “Bitcoin City”, funded by a $1 billion “volcano bond”. One-half of the funds will be used to buy Bitcoin, and the other half will be invested into Bitcoin mining infrastructure utilizing the nation’s volcanic energy.
This is further proof of El Salvador’s long-term faith in Bitcoin’s price appreciation. Should it rise, the nation’s profits from its Bitcoin holdings and mining will help to pay back the bonds’ 6.5% annual coupon. So far, Bitcoin’s average annual price appreciation since 2013 has been 100%.