Taking advantage when the price of Bitcoin fell deeply, the government of a country spent 575 billion dong to ‘catch the bottom’

The government of El Salvador has just continued to buy another 420 Bitcoin (BTC) to add to its investment portfolio, according to information recently posted on the official twitter page of the country’s president – Mr. Nayib Bukele. Accordingly, this latest purchase brings the total number of Bitcoins held by the Central American country to 1120 BTC.

“It was a long wait, but it was worth it. We just hit the bottom!” President Bukele wrote on Twitter.

According to Business Insider, the price of Bitcoin fell below $59,000 on Wednesday, the lowest price about a week after Bitcoin broke its old peak to set a new record near $69,000. This is believed to be the time when the government of El Salvador decided to spend about 25 million USD (about 575 billion VND) to “catch the bottom.” At the moment, the Bitcoin price is at 60,870 USD.

El Salvador President Nayib Bukele

Notably, the fact that Bitcoin peaked last week also brought quite a significant profit for the country. As revealed by President Nayib Bukele on Twitter, the El Salvador government has an investment trust fund (ie a fund that receives capital from donors, ie trustees, to invest – NV), which is holding hold both cryptocurrencies and USD. As Bitcoin increases in value, the government of El Salvador withdraws that profit in USD from the trust.

In September alone, the El Salvador government had two bottom-fishing times when the cryptocurrency plunged to $45,000, on September 20 and September 7, respectively. Although not officially announced, the total amount El Salvador spent to own 700 BTC in September 2021 alone is estimated at 34.3 million USD, or about 49,000 USD for 1 BTC on average.

According to calculations by many crypto experts, the government of El Salvador could profit up to 11.6 million USD (about 23.4% profit) when the Bitcoin price hits 66,400 USD/BTC on October 20 – all thanks to the “sale” times after 1 month of investing in the cryptocurrency market.

“They can never beat you if you bottom,” President Bukele said in a tweet at the time.

In early September, El Salvador became the first country in the world to recognize the legitimacy of Bitcoin.

Geothermal Plant Powers El Salvador’s Bitcoin Mining Farms

Not only investing in Bitcoin, the El Salvardor government also aims to mine the cryptocurrency right here in the country by taking advantage of the energy obtained from the volcano. Accordingly, the country has built an energy production plant operated by LaGeo – a geothermal company owned by the country’s government. This plant will be in charge of providing electricity for the Bitcoin mining farms of the El Savaldor government to operate.

At the beginning of October, El Salvador claimed to have mined 0.00599179 Bitcoins powered by volcanic energy. The number is expected to be much higher at this time, when ASIC miners for Bitcoin mining are installed by the government of El Salvador.

Consult Business Insider