REGULATION

Salvadoran President buys another 80 bitcoins, holding now approaching a $60 million loss

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Salvadoran President buys another 80 bitcoins, holding now approaching a $60 million loss

Two months after "buying the dip" at $30,744 per Bitcoin, Salvadoran President Nayib Bukele announced the purchase of 80 Bitcoins at an average price of $19,000 each. The total holding is currently at a loss of approximately -$56.71 million (-54%).

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According to statistics, El Salvador has been buying Bitcoin since September 7 last year, and currently:

  • Hold 2,381 BTC
  • Possible average price: $44,119
  • Possible cost: $105,049,267

Various sectors have been closely monitoring El Salvador's moves since the Bitcoin crash. The cost of holding coins is higher compared to MicroStrategy, and El Salvador's President Nayib Bukele, who has been high-profile in buying the dip multiple times, did not comment when Bitcoin fell below $30,000 in June, approaching the psychological barrier and 2017 high of $20,000.

At a press conference, El Salvador's Finance Minister Alejandro Zelaya refuted the risks of Bitcoin floating loss when questioned. He stated:

Many people have been surprised by our Bitcoin strategy recently. I have said many times, there is no such thing as a $40 million loss because we have not sold any Bitcoin. When the outside world says that El Salvador faces high financial risks due to Bitcoin, it just makes me want to laugh. This is an analysis that is based on ignorance and is very superficial. $40 million is not even 0.5% of our country's total budget, the financial risk it can cause is very low.

In fact, the actual situation of Nayib Bukele's advocacy of buying Bitcoin is very opaque, and no one knows the budget, flow of Bitcoin, private key controllers, and specific plans. He said on June 19 in a tweet:

I see some people worrying and anxious about the price of BTC. I suggest not looking at the charts anymore, just enjoy life. If you have invested in Bitcoin, this investment will be safe, and its price will increase significantly after the bear market. Patience will be key.

After buying 80 Bitcoins, he stated that Bitcoin is the future and thanked everyone for letting him buy cheap.