El Salvador expands Bitcoin reserves with additional 12 BTC purchase

El Salvador has recently acquired 12 Bitcoin (CRYPTO:BTC), increasing its total reserves to 6,044 BTC, valued at over $617 million.

This purchase comes despite a prior agreement with the International Monetary Fund (IMF) that aimed to curtail some of the country’s cryptocurrency policies.

On January 19, the National Bitcoin Office announced the acquisition of 11 BTC for its Strategic Bitcoin Reserve, worth more than $1 million.

Additionally, on January 20, El Salvador purchased another Bitcoin for approximately $106,000.

The country’s Bitcoin holdings have seen substantial growth, especially as Bitcoin prices surged past $109,000 on January 20, breaking its previous all-time high.

This price increase coincided with the inauguration of President-elect Donald Trump, raising expectations within the crypto community about a more favorable regulatory environment for digital currencies.

Despite a $1.4 billion financing agreement with the IMF that requires El Salvador to limit its Bitcoin activities, the government remains committed to its cryptocurrency strategy.

The IMF deal included provisions for making private sector acceptance of Bitcoin voluntary and reducing government involvement in the Chivo crypto wallet.

However, shortly after finalising this deal, El Salvador reaffirmed its dedication to Bitcoin by purchasing $1 million worth of the cryptocurrency.

As of January 20, El Salvador's Bitcoin stockpile has generated a profit of approximately $179 million due to the recent surge in value.

Despite these developments, a survey conducted in October revealed that 92% of Salvadorans do not use Bitcoin for transactions, indicating a gap between government policy and public adoption.

El Salvador is not alone in accumulating Bitcoin; Bhutan has also been reported to hold significant digital assets through mining operations.

At the time of reporting, the Bitcoin (BTC) price was $101,523.