El Salvador is the first country in the world to make Bitcoin a legal tender. The President of the South American region, Nayib Bukele, has continued to look for a dip to enhance the government reserves of Bitcoin. Recently, Bukele announced another purchase of 100 Bitcoin units when the price fell to $54K during the latest dip.
The entire country of Salvador is now depending on Bitcoin to make economic progress. On the other hand, huge institutions like MicroStrategy have also decided to follow in the footsteps of Salvador and buy from the Bitcoin dip. Under the supervision of Bitcoin maximalist, Michael Saylor the business intelligence agency, has reportedly expanded their Bitcoin reserve recently.
Michael Saylor has been an outspoken and vocal Bitcoin proponent. He has gone on to keep expanding the Bitcoin reserve held by MicroStrategy despite all the criticism. Recently, the official Twitter account of MicroStrategy has made it public that the company bought 7002 Bitcoin units for an average price of $59K.
It is interesting to notice that thus far, MicroStrategy has invested a total of $3.57 billion on Bitcoin accumulation. However, according to the details provided by the organization, the company has been able to score a profit of $29K per Bitcoin unit. The recent average buying price of Bitcoin is also far away from the $68K BTC ATH registered in November this year.
Under the Biden administration, a new infrastructure bill has been written into the law. By the decree of the new Act, all crypto brokers are liable to declare their crypto reserves and holdings. The act also seeks to impose capital gains tax on crypto profits. On the other hand, the new COVID variant has created havoc in the financial markets globally.
However, institutional investors have continued to accumulate and hold their Bitcoin reserves. Tesla reportedly holds 48K BTC, Galaxy Digital holds 402 BTC, Square Inc. holds 8,027 Bitcoins, Marathon Patent Group holds 4,813 BTC, among others. Statistics show that the returns on the Bitcoin holding for these institutional investors have produced 100% or greater profits on average.