El Salvador, the world's first country to establish bitcoin (BTC-USD) as legal tender, will transfer a "big chunk" of its BTC holdings to a cold wallet, its president Nayib Bukele said.

The cold wallet will be stored in a physical vault within the country's territory. "You can call it our first bitcoin piggy bank," Bukele said on social media platform X.

The bitcoin (BTC-USD) holdings in the cold wallet are valued at $406.6M (~5,689.7 BTC), according to the post.

The move comes as the top cryptocurrency hit a record high of around $73,750 on Thursday, although it later slid to below $70,000 as another hot U.S. inflation report bolstered bets that the Federal Reserve will not cut interest rates any time soon.

Recall that El Salvador adopted bitcoin (BTC-USD) as legal tender in 2021, a move that sparked widespread criticism. Bukele had also announced plans to build a tax haven called Bitcoin City that would use geothermal energy for BTC mining. However, no updates have been announced since.