El Salvador President Nayib Bukele announced on 4th November that the Central American country had acquired an additional 150 bitcoins after the digital currency’s value slumped again, enlarging his bet on the cryptocurrency despite criticism.
“El Salvador just bought the dip! 150 coins at an average USD price of ~$48,670,” Bukele wrote on Twitter.
The purchase was after the market price momentarily slipped below $50,000, losing over 15% in market value. While Bukele’s government was able to purchase the coins for $48,670 each, the bear market temporarily pushed the Bitcoin price down to roughly $42,000, after it fell over 37% from it’s all-time high.
Previously, on October 28, the president declared that he had purchased 420 Bitcoins during a temporary bear market. The Salvadoran government’s game plan entails extracting unrealized BTC gains in US dollars to fund various development projects while keeping the central reserve’s overall value stable.
President Bukele announced the opening of Bitcoin City on November 21, a project first supported by $1 billion in Bitcoin bonds. Bukele claims that:
“We will have digital and technology education in #BitcoinCity.” Geothermal energy for the entire city, as well as efficient and environmentally friendly public transportation.”
The Bitcoin City initiative also includes famous crypto firms such as Bitfinex and Adam Back’s Blockstream, which, according to Bukele, “will soon be home to several local and foreign digital asset offers while designing new digital asset regulation for the country.”
Until 26th November, El Salvador had 1,220 bitcoins. With the new purchase, El Salvador’s Bitcoin reserve now amounts to 1,270 BTC, which is worth nearly $60.3 million.