El Salvador President Nayib Bukele and Strategy (formerly MicroStrategy) founder Michael Saylor met on Tuesday to discuss Bitcoin. The two shared pictures of the meeting, which took place at the El Salvador Presidential Palace on X. While details of the meeting were not made public, Saylor said that the discussion focused on how El Salvador could benefit from Bitcoin adoption. He said: “Yesterday, @NayibBukele and I had a great discussion about the opportunities for El Salvador🇸🇻 to benefit from and accelerate global Bitcoin adoption.” Bukele responded by saying : “Alexa, summon the orchestra.” Many people have taken this as positive news of a potential partnership between Strategy and El Salvador. Multiple speculations are now being made about what the agreement could be. Bukele and Saylor are heavily pro-Bitcoin and believe in making Bitcoin a reserve asset. Under Bukele’s leadership, El Salvador became the country with the largest Bitcoin reserve, and Saylor led Strategy to become the biggest corporate holder of Bitcoin. Some speculate that MicroStrategy could move its headquarters to El Salvador, noting that another major crypto company, Tether, has already made a similar move. However, that is highly unlikely, given that MicroStrategy already has its headquarters in the US, where the regulatory environment is starting to change for the better. El Salvador President Nayib Bukele and Strategy (formerly MicroStrategy) founder Michael Saylor. Source: X El Salvador reiterates Bitcoin commitment Meanwhile, Bukele’s meeting with Saylor reiterates El Salvador’s commitment to Bitcoin. Although the Central American country became the first to adopt Bitcoin as a legal tender in 2021, there have been concerns about whether it prioritizes its pro-Bitcoin policies. This followed its recent decision to reverse Bitcoin status as a legal tender as part of the terms of a $1.4B loan agreement signed with the International Monetary Fund (IMF). While the decision raised some eyebrows in the Bitcoin community, many believe it does not change its pro-Bitcoin stance. That view appears to be true so far, with the country continuing with one Bitcoin per day strategy. It recently acquired its latest Bitcoin, taking its holdings to 6,078 BTC worth over $597 million. This accounts for around 15% of the country’s national reserve. Strategy increases BTC holdings to over 478k BTC Compared to El Salvador, Strategy has been more bullish in its acquisition strategy. It announced its latest purchase a few days ago, buying 7,633 BTC for over $740 million. Its total bitcoin holdings are now 478,740 BTC, worth $46 billion, with the cost of acquisition being $31.1 billion. The company is not just sitting on over $14 billion in unrealized profits; it also continues to generate gains on its BTC holdings. Saylor said on February 11 that Strategy treasury operations had generated 18,527 BTC worth $1.8 billion for shareholders this year. Strategy Bitcoin Yield (Source – Michael Saylor) This perhaps explains why it changed its name to Strategy to reflect its full focus on Bitcoin. MicroStrategy was initially a business intelligence software company before pivoting to BTC in 2020. The success of its strategy has led others, such as Kulr Technolgy, Semlar Scientific, and Metaplanet, to copy its approach. Meanwhile, Strategy’s recent acquisitions and Saylor’s meeting with Bukele have done nothing to lift the BTC’s price. The flagship asset, which has been below $100,000 since February 4, remains stuck in the $90,000 range. This is likely due to several factors, including the recent rise in inflation rate and the tariff wars that continue to play out between the US and other countries. Cryptopolitan Academy: FREE Web3 Resume Cheat Sheet - Download Now
