El Salvador's Bitcoin Strategy Pays Off with $85M Profit Amid Market Surge
Summary:
El Salvador's Bitcoin purchases have yielded a 70% return amid a recent cryptocurrency surge, recording an $85 million profit. Under President Nayib Bukele's strategy, the nation launched Bitcoin as legal currency in September 2021, and despite initial falls in value, profit surged as Bitcoin prices exceeded the average buying price. El Salvador's total Bitcoin portfolio is now worth approximately $207.3 million. The country also earns additional Bitcoin revenues from various programs and services. Moves like expedited Bitcoin donation citizenships aim to attract foreign investment.
El Salvador's President Nayib Bukele has succeeded in making substantial earnings through his Bitcoin investment approach. After a recent surge in Bitcoin value, the country has made a 70% return on its average dollar acquisition cost. As per the data from the Nayib Tracker website, El Salvador's digital currency treasury has gained a profit of $85 million, following Bitcoin's fresh record-breaking ascent posted on March 11 when it reached over $72,000.
The Central American country started investing in Bitcoin in September 2021, acknowledging it as legal tender. Bitcoin was trading at $51,769 during its initial buy of 200 coins. Bukele's decision met some criticism as Bitcoin plunged to $16,000 after a high of $69,000 in November 2021, pushing the portfolio significantly down. Nevertheless, the portfolio rebounded and began profit-making after the Bitcoin price overcame the average buying price of $42,600 in February. The total value of the portfolio that holds 2,861 Bitcoin, is now around $207.3 million.
Besides the profit, President Bukele highlighted on March 12 that the nation has also been gathering Bitcoin revenues from its passport program, conversion of Bitcoin to USD for local firms, Bitcoin mining and government services.
In an effort to attract foreign investors, El Salvador approved legislation in December that allows swift citizenship for outsiders who donate Bitcoin to governmental socio-economic development initiatives. Furthermore, in October, El Salvador initiated its first Bitcoin mining pool, a collaboration between Volcano Energy and Luxor Technology.
Venture capitalist Tim Draper suggests if Bitcoin value touches $100,000, El Salvador might be capable of settling its debts with the International Monetary Fund (IMF), moving towards financial self-sufficiency. In February, Bukele secured another term as President after a major electoral triumph. He recently criticized the media for their focus on potential losses when Bitcoin's market price dropped.
Published At
3/12/2024 6:50:02 AM
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