Nayib Bukele has spent an additional $1 million in Bitcoin, contributing an additional 80 BTC to El Salvador’s current reserve of 2,301 BTC.
Nayib Bukele president of El Salvador, either really believes in Bitcoin or he must like losing money. Bukele claimed last night that he paid an additional $1.5 million to purchase 80 BTC at $19,000 each coin, notwithstanding the tremendous losses experienced by his approach of investing public funds in Bitcoin.
According to his own tweets, Bukele had previously spent around $104 million to purchase 2,301 BTC at an average price of $45,171. Yesterday, when Bitcoin dropped below $19,000, El Salvador’s Bitcoin reserves were worth $43,719,000, meaning losses of around $60.2 million for the nation.
With this most recent acquisition, Bukele would reduce the average price per Bitcoin invested from $45,171 to $4,213. In order for Bukele to recover the investment made on behalf of his nation, Bitcoin would have to surge to $44,219 (a gain of more than 100 percent) before he could even pocket a profit.
Positive long-term Bitcoin investors have also copied the approach of collecting Bitcoin after significant price decreases. Michael Saylor, CEO of MicroStrategy, recently revealed a $10 million Bitcoin purchase, raising his company’s total Bitcoin holdings to 129,699 BTC at an average price of $30,435. This amounts to almost $1.3 billion in losses, although Saylor, like Bukele, does not seem too worried by Bitcoin’s short-term volatility.
In addition to doubling hard on Bitcoin despite huge losses, Bukele’s most recent purchase was noteworthy for a second reason. The president disclosed for the first time fresh information on how he acquires BTC for his country.
Bukele displayed images of several BTC purchase orders being completed at $19,000. If these screenshots correlate to the account used to purchase Bitcoin for El Salvador, then the president utilises a typical centralised exchange rather than an over-the-counter (OTC) desk, which would make more sense for high-profile transactions.
It could also imply that Bukele does not make purchases at market prices but instead leaves “limit” buying orders open. In this instance, a portion of the transaction was fulfilled upon completion, as the price of Bitcoin reached precisely $19,000.
Also Read: Voyager Digital Suspends Withdrawals and Additional Services
