El Salvador Secures Large Bitcoin Portion in Cold Wallet, Receives Massive Support
Summary:
El Salvador has publicly announced its decision to secure a large portion of its Bitcoin (BTC) in a physically protected cold wallet, which has already seen deposits of coveted "rare sats" and Ordinals. The nation's president, Nayib Bukele, declared this as part of their Bitcoin strategy on March 14. The new wallet already holds a balance of $388 million in Bitcoin and has received numerous smaller transactions, contributing to its current total of 5,689 BTC, surpassing the previously presumed treasury holdings.
Following El Salvador's public announcement to secure a substantial portion of its Bitcoin (BTC) in a physically protected cold wallet, the wallet has already received deposits of sought-after "rare sats" and Ordinals. President Nayib Bukele of El Salvador revealed on March 14 that some of the nation's Bitcoin stocks will be safeguarded in a cold wallet, physically stored within a vault. The wallet currently holds a balance of $388 million in Bitcoin, as tracked by Bitcoin explorer Mempool.
Additionally, Ordiscan indicates that the wallet has received at least 67 Ordinals donations, including BRC-20 tokens, inscription texts, images, a 3D "runestone," and even a replica of the "Cypherpunk Manifesto." The wallet also holds an estimated $700 in satoshi donations, with many tagged as "pizza" and "vintage" sats. For instance, “pizza sats” originate from the infamous 10,000 BTC used by early Bitcoin developer Laszlo Hanyecz to buy two pepperoni pizzas from Papa John’s on May 22, 2010.
So far, 56 transactions have been made to this new wallet, with the majority being of small amounts. Gerson Martínez, a strategist at the El Salvadoran Bitcoin mining project Volcano Energy, expressed his enthusiasm for the support on March 15. HODL15Capital's account has also commended the transparency resulting from Bukele and El Salvador's approach.
The cold wallet's Bitcoin balance, currently standing at 5,689 BTC, surpasses the 2,864 BTC, equivalent to $195 million, previously thought to be held in the government's treasury per data from Nayib Bukele Portfolio Tracker. Bukele has indicated that this does not include the Bitcoin earned from the government's passport program, mining projects, and local business USD to BTC conversions.
El Salvador transferred the 5,689 BTC balance in several transactions. The first transfer of 1,120 BTC, or $76.5 million, was conducted on March 13, utilizing a 3/5 multisignature authorization process approved by four signatories, as per Mempool. The most significant transfer of 4,000 BTC, valued at $273 million, took place at 9:38 pm UTC on March 14. This occurred around two hours after Bukele had shared the news.
Nayib Bukele, who championed El Salvador's groundbreaking Bitcoin legislation in September 2021, was re-elected as president on Feb. 4, gaining over 80% of the votes. His actions helped El Salvador become the first country to adopt Bitcoin as legal tender.
Published At
3/15/2024 7:30:40 AM
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