El Salvador’s Bitcoin Moves Questioned, Meliuz Turns to Options

El Salvador, the first country in the world to adopt Bitcoin as legal tender, is once again in the headlines. President Nayib Bukele has often highlighted his government’s ongoing Bitcoin acquisitions, insisting that the country will “never stop” buying the cryptocurrency.

However, blockchain analysts are raising questions about how these purchases are being carried out. On September 9, Sani, the founder of the Time Chain Index platform, pointed to unusual on-chain activity suggesting the government may be “recycling” Bitcoin rather than making entirely fresh purchases.

Evidence of ‘Bitcoin Recycling’

Sani examined transactions linked to a specific Bitcoin address, 3KhF5JyMkTtViu2jnp5rffedQbVjydRYKC, which has been associated with El Salvador’s purchases in the past. According to his findings, the address withdrew 63 BTC from Binance, a major exchange, in what appeared to be part of a recycling process.

The blockchain data revealed a pattern: the address sent Bitcoin to Binance, followed by withdrawals back to addresses tied to El Salvador. This raised questions about whether the government is reshuffling existing Bitcoin holdings rather than continuously buying new coins on the open market.

Sani also highlighted activity from September 7, when President Bukele revealed that El Salvador acquired 21 BTC to celebrate Bitcoin Day. Instead of reflecting a fresh purchase, the data showed that 21 BTC were simply transferred directly from the Binance-linked address to the government’s wallets.

Why It Matters for El Salvador

If the government is indeed recycling Bitcoin instead of making net-new acquisitions, it could affect transparency around how much Bitcoin the nation truly holds. While this does not necessarily mean El Salvador is misrepresenting its reserves, the practice raises important questions about how its Bitcoin strategy is being implemented.

Transparency is particularly critical for El Salvador, as the nation’s Bitcoin policy has been closely watched by both supporters and critics worldwide. Clear reporting of purchases and reserves can influence how global investors perceive the credibility of the country’s financial strategy.

Meliuz Turns to Options for Bitcoin Accumulation

Meanwhile, in Brazil, cashback and digital services company Meliuz is expanding its treasury management approach by adopting an options-based Bitcoin strategy. Already a pioneer in building a Bitcoin reserve in Latin America, Meliuz now holds more than 600 BTC.

The company revealed that it will begin selling put options with defined strike prices as a way to increase returns and accumulate more Bitcoin. For example, if Meliuz sells contracts with a $95,000 strike price and Bitcoin trades above that level, it keeps the premium when the contract is executed. If Bitcoin falls below the strike, Meliuz would have to buy BTC at the strike price — a scenario that still aligns with its long-term goal of growing reserves.

A Cautious, Low-Risk Strategy

Meliuz explained that only a small fraction of its operational cash reserves — less than 10% — will be used to back these options. This ensures that risk remains limited while still allowing the company to benefit from Bitcoin’s volatility.

To support this strategy, Meliuz has partnered with specialized institutions that have experience in handling derivatives. Although the names of these partners were not disclosed, their role will be key in ensuring the strategy runs smoothly.

The company also pledged to disclose the results of these operations in its quarterly financial statements, providing transparency for investors.

Uruguay Explores Digital Currency Potential

Elsewhere in the region, Uruguay is preparing to study the potential of adopting digital currencies. The government is reportedly considering how digital financial tools, including central bank digital currencies (CBDCs), could be integrated into the national economy.

Although Uruguay has not yet revealed concrete plans, the study signals a growing interest among Latin American countries to explore digital financial systems as part of broader modernization efforts.

Latin America’s Expanding Crypto Footprint

This week’s developments highlight the different approaches Latin American countries and companies are taking toward cryptocurrency adoption:

• El Salvador continues its Bitcoin experiment, though questions about transparency persist.

• Meliuz is using financial innovation through derivatives to strengthen its Bitcoin position.

• Uruguay is in the early stages of exploring how digital currencies might fit into its economy.

Together, these stories underline how Latin America remains one of the most dynamic regions in the world for cryptocurrency experimentation and adoption.

Conclusion

The past week has shown once again that Latin America is a key player in the evolving crypto landscape. El Salvador faces scrutiny over its Bitcoin reserve strategy, Meliuz is leveraging financial tools to expand its holdings, and Uruguay is moving toward a deeper exploration of digital currencies.

As these developments unfold, they provide insight into how governments and businesses across the region are navigating the challenges and opportunities of cryptocurrency adoption.