Bitcoin News Today: El Salvador Diversifies Reserves with Gold and Quantum-Proof Bitcoin Strategy

El Salvador continues to expand its strategic financial reserves by integrating both Bitcoin and gold into its portfolio, while HIVE Digital Technologies advances its Bitcoin mining operations in Paraguay. The Central American nation recently acquired $50 million worth of gold—13,999 ounces—bringing its total gold holdings to 58,105 ounces, valued at approximately $207 million. This marks El Salvador’s first gold purchase since 1990 and reflects a broader diversification effort in response to Bitcoin’s price volatility and macroeconomic uncertainties. The move aligns with global trends, as central banks worldwide added over 1,000 tonnes of gold in the past three years, with gold now accounting for nearly 20% of central bank reserves globally.

El Salvador’s central bank, in a statement, emphasized that the acquisition supports its long-term strategy to stabilize international reserves and reduce economic exposure. The country’s international reserves stood at $4.7 billion as of July 2025, with $700 million allocated to Bitcoin. The purchase also coincides with rising gold prices, which have surged over 36% year to date, driven by strong central bank demand and expectations of Federal Reserve rate cuts in the coming months.

Simultaneously, El Salvador’s National Bitcoin Office has taken measures to enhance the security of its Bitcoin holdings by splitting its 6,284 BTC reserve—valued at over $682 million—into 14 separate addresses. This initiative aims to mitigate potential risks from future quantum computing threats by reducing the concentration of large holdings in a single wallet. Each new address holds less than 500 BTC, with the strategy designed to ensure the long-term viability of the country’s digital currency reserves. The move follows recent concerns raised by cybersecurity experts about sophisticated threats targeting digital assets, including cryptojacking and malvertising campaigns.

Meanwhile, HIVE Digital Technologies, a multinational digital infrastructure company, has made significant strides in Paraguay’s Bitcoin mining sector. The company recently completed Phase 2 of its Yguazú Project, achieving a global hashrate of 18 exahash per second (EH/s) and producing over 8.5 Bitcoin per day. The operation is powered by renewable hydroelectric energy from Paraguay’s Itaipú Dam, one of the largest hydroelectric facilities in the Western Hemisphere. HIVE’s Paraguay expansion now includes a 200 MW facility operating at a fleet efficiency of approximately 18.5 joules per terahash (J/TH), making it one of the most energy-efficient Bitcoin mining operations globally.

The company’s dual business model—combining Bitcoin mining with AI cloud computing—has positioned HIVE as a key player in the digital infrastructure space. With Phase 3 of its Valenzuela site now energized, HIVE anticipates a further expansion to 25 EH/s by U.S. Thanksgiving, potentially representing 3% of the global Bitcoin mining network. This growth trajectory is supported by pre-funded ASIC purchases and an optimized cost structure, with fixed-rate energy agreements and low incremental labor costs.

El Salvador’s strategic diversification and HIVE’s operational progress reflect a broader shift in Latin America’s engagement with digital assets and alternative reserves. While El Salvador’s dual approach to Bitcoin and gold underscores its commitment to macroeconomic stability, HIVE’s renewable-powered mining operations highlight the region’s growing appeal as a hub for sustainable digital infrastructure.

Source:

[1] El Salvador buys $50M in gold for reserve diversification (https://www.mining.com/el-salvador-buys-50m-of-gold-for-reserve-diversification/)

[2] HIVE Digital Technologies Completes Phase 2 of Its Yguazú Project in Paraguay Reaching 18 EH/s, Producing 8 Bitcoin per Day from Hydroelectric Power (https://www.hivedigitaltechnologies.com/news/hive-digital-technologies-completes-phase-2-of-its-yguazu-project-in-paraguay-reaching-18-ehs-producing-8-bitcoin-per-day-from-hydroelectric-power/)

[3] Cryptohack Roundup: El Salvador Splits Bitcoin Reserve (https://www.bankinfosecurity.com/cryptohack-roundup-el-salvador-splits-bitcoin-reserve-a-29362)