El Salvador's Bitcoin reserves surpassed $500 million during Monday's Bitcoin rebound, becoming the focus of global attention. Meanwhile, the small South Asian country of Bhutan also reached $1.1 billion in Bitcoin reserves, highlighting the different trajectories of these two countries in the cryptocurrency space.
Key Points
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El Salvador's Bitcoin reserves now exceed $500 million, while Bhutan's reserves exceed $1.1 billion.
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Bhutan's Bitcoin reserves account for one-third of its GDP, while El Salvador's Bitcoin reserves only account for 1.5% of its GDP.
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The financial situation of the El Salvador government continues to improve.
The strong rebound of Bitcoin on Monday pushed El Salvador's Bitcoin reserves value above $500 million, while Bhutan's Bitcoin reserves reached $1.1 billion. According to data from the El Salvador Bitcoin Office, the country's Bitcoin reserves are close to 5,932 tokens, valued at approximately $516 million at current prices.
While El Salvador President Nayib Bukele's Bitcoin investments are noteworthy, Bhutan's story seems to attract even more attention. This small country with a population of only 800,000 holds 12,574 Bitcoins, valued at approximately $1.1 billion at current prices.
From another perspective, Bhutan's Bitcoin reserves value accounts for one-third of its nearly $3 billion GDP, while El Salvador's $500 million Bitcoin reserves only account for 1.5% of its GDP.
Bhutan's Bitcoin reserves have primarily been accumulated through Bitcoin mining, as the country has abundant hydropower resources. According to a report by Arkham Intelligence, the country was considered the fourth-largest national Bitcoin holder in the world in September.
El Salvador made several Bitcoin purchases during the 2021 bull market and began gradually increasing its Bitcoin holdings through dollar-cost averaging in November 2022. According to Bukele, by December 2023, El Salvador's Bitcoin investments had turned a profit. El Salvador's Bitcoin strategy has been a focal point of concern for the International Monetary Fund, which has expressed worries about the country's financial situation.
However, El Salvador's financial situation appears to be continuously improving. The country announced today plans to repurchase $2.5 billion in dollar debt. According to Bloomberg, since Donald Trump's election last week, El Salvador's debt yield has reached 4.7%.