El Salvador snaps up 11 Bitcoin worth over $1 M to supercharge its crypto reserves

El Salvador has improved its national Bitcoin reserve by adding 11 Bitcoins for $1 million. The latest investment means that the country holds a total of 5,980 Bitcoins. The purchase comes only a few days after the country acquired a $1.4 billion development loan from the IMF.

To secure the IMF deal, the country agreed to slow down on some of its crypto policies, especially the one targeting its digital wallet, Chivo. El Salvador agreed to retire or sell its digital wallet.

El Salvador has been making huge gains in the reserve’s value. The Nayib Bukele portfolio tracker, which has been monitoring Bitcoin purchases, reports unrealized gains of over $125 million. This is almost 91.54% growth in reserve value. According to the tracker, the reserve is making high profits on purchases made during bear markets, when prices were as low as $19,000.

El Salvador walks the talk as they continue to buy Bitcoins

Although people thought the IMF agreement would slow down the country’s quest for BTC, it won’t. El Salvador had clarified that it would keep buying and holding Bitcoin. El Salvador’s national Bitcoin office director, Stacy Herbert, wrote on X that Bitcoin would remain legal tender in the Central American country and that the government would keep adding to its strategic reserves.

Earlier, Eugene Epstein, the head of trading and structured products for North America at Moneycorp in New Jersey, felt El Salvador’s announcement was a PR gimmick. He said the announcement might have been a way to counter negative throwback, but now that they are buying, it means that cryptocurrency has become their way.

Did the IMF intend to control the El Salvador BTC model?

There was much speculation when El Salvador agreed to amend its crypto policies. Some even felt that the IMF was arm-twisting Salvador for the development loan they requested. Yet, the latest development is a testament that El Salvador’s journey to accumulate Bitcoin is in progress.

Most people are worried about the risks associated with BTC and feel it’s a huge gamble for governments to adopt crypto as a legal tender. However, crypto enthusiasts have been encouraging the adoption, insisting that the reward outweighs risks by far.