El Salvador Purchases 5 BTC

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The El Salvador government continues with their BTC purchase program of 1 BTC per day, which has been ongoing since 2021. This week, they purchased 5 BTC ($416K) in a single day, deviating from their usual plans. The recent purchases bring their total balance to 6,103 BTC, which is worth just over $511M at today’s prices.

This recent 5 BTC purchase marks a notable shift in strategy. The "1 BTC per day" program, active since 2021, represented a passive, programmatic approach to accumulation. By executing a single, larger purchase, the government has signaled a more active, or perhaps opportunistic, management of its treasury, moving away from its established daily standard.

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The purchases continue despite El Salvador’s recent deal with the International Monetary Fund (IMF), in which the IMF made a $1.4B loan to the El Salvador government, in exchange for limiting their involvement in Bitcoin-related activities. These conditions include the slowdown of their purchase program and the removal of mandatory acceptance of the asset by merchants, among other conditions.

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This situation highlights a significant point of friction. The government's decision to not only continue but accelerate its BTC purchases directly conflicts with the conditions set by the IMF for the $1.4B loan. This action demonstrates El Salvador's prioritization of its sovereign Bitcoin strategy, even when it runs contrary to the terms of its recent international financing agreements.