The price of BTC dropped almost 10% on Friday (26), as well as most global assets. While many investors were selling, the government of El Salvador bought another 100 BTC for its reserves.
The purchase was announced on Friday by the country’s president Nayib Bukele. The agent did not disclose the purchase amount, but the BTC price was quoted at $54,000 at the time of purchase.
“El Salvador just bought it in the fall. 100 extra Bitcoins purchased at a discount”, said Bukele. With that, the country now accumulates 1,210 BTC in its financial reserves.
But Bukele is not alone in this endeavor. MicroStrategy CEO Michael Saylor has just announced the purchase of 7,002 BTC for the company’s cash. With the acquisition, MicroStrategy breaks the 120,000 BTC cash mark.
Bukele reinforces reserves
BTC became legal tender in El Salvador on 7 September. Three months earlier, Ley BTC had been officially approved in the country. Also in September, the country began to build up its reserves in BTC, making two purchases of 200 BTC each.
Another purchase of 150 BTC was made in September, and others took place over the months. At the moment, the average price in the country is around US$ 53,000. In other words, Bukele’s “trade” has been profitable for the country.
On November 20, Bukele said that the country will build an entire city based on the BTC, during a presentation at laBitconf. Entitled BTC City, the city will have no taxes – except a value-added tax (VAT) – and will be powered via geothermal energy.
To finance the project, the government will issue R$ 5 billion in debt securities, half of which will be used to buy more BTC. In other words, Bukele is likely to continue its policy of buying low and making big profits.
MicroStrategy Announces Purchase
MicroStragey was also bought by BTC, as announced by CEO Michael Saylor. However, the company’s average price was US$59,187 for this purchase, higher than in El Salvador.
In total, the company paid US$ 414.4 million, which corresponds to R$ 2.3 billion in the current quotation. As a result, the company now owns 121,044 BTC, the largest amount among all listed companies.
MicroStrategy has purchased an additional 7,002 bitcoins for ~$414.4 million in cash at an average price of ~$59,187 per #BTC. As of 11/29/21 we #hodl ~121,044 bitcoins acquired for ~$3.57 billion at an average price of ~$29,534 per BTC. $MSTRhttps://t.co/OA8VWG1bZX
— Michael Saylor⚡️ (@saylor) November 29, 2021