El Salvador's Government-Owned Bitcoin Now Worth Over $150 Million
Summary:
El Salvador's government-owned Bitcoin (BTC) is now valued over $150 million, marking a $50 million increase from its original cost. Since adopting Bitcoin as legal currency in 2022, El Salvador has accumulated roughly 2,380 BTC. Despite the market fluctuations, President Nayib Bukele confirms the government's intention to hold on to its Bitcoin assets. As of now, El Salvador remains the only country to adopt a "Bitcoin standard", though others are rumored to follow.
Government-owned Bitcoin (BTC) in El Salvador has increased in value to over $150 million, according to data from Bitcoin Treasuries. This reflects an increase of $50 million compared to the original cost. El Salvador began using Bitcoin as legal currency in 2022, and its stockpile has since skyrocketed in value. After President Nayib Bukele announced daily purchases of 1 BTC, the country has accumulated roughly 2,380 BTC or $158.5 million. Given Bitcoin’s record-breaking high on March 5, 2024, this amount was worth $164.7 million, a 53% increase over El Salvador’s total cost basis. The average purchase price was $44,300 per Bitcoin.
In a recent remark on X (formerly Twitter), the recently re-elected Bukele condemned the media's narrative on the government's economic policy. He commented that when Bitcoin's market price was low, numerous articles were written about their alleged losses. Now that the price has drastically improved, selling would result in a 40% profit from market purchases. Despite this, he firmly stated that the government would not be selling its Bitcoin holdings.
Although El Salvador's shift to Bitcoin has been widely discussed, it remains the only country employing a "Bitcoin standard." There have been rumors of other countries, notably in South America and beyond, following in El Salvador's footsteps, but no formal declarations have been made. Samson Mow of JAN3, a firm striving to sped up "hyperbitcoinization," confidently predicts that more nation-states will adopt Bitcoin, joining corporations and institutional buyers. He pointed out that as Bitcoin continues to rise, buyers insensitive to price, including retail investors purchasing in smaller quantities, will continue to drive the market.
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Published At
3/6/2024 5:19:23 PM
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