El Salvador has witnessed a significant return on its investment in Bitcoin, with its holdings now valued at over $147 million, marking a profit of more than 40%. This financial milestone showcases the country’s strategic success since it began purchasing Bitcoin in September 2021. Currently, if El Salvador chose to liquidate its Bitcoin assets, it would realize a profit of approximately $41.6 million, equating to an impressive gain exceeding 40%. This information was shared by President Nayib Bukele on the social media platform X, emphasizing the profitable outcome of the country’s investment strategy.
The Country’s Approach and Future Plans
President Bukele highlighted the criticism faced by El Salvador during periods when Bitcoin’s market price was low, contrasting it with the current situation where the market’s upswing could yield the country a substantial profit. Despite the potential for profit, Bukele made it clear that El Salvador has no plans to sell its Bitcoin holdings. He attributed the country’s additional Bitcoin acquisitions to its citizenship program, which encourages donations in BTC in exchange for expedited citizenship, though the specific donation amount remains unspecified.
Acquisition Strategy and Bond Market Performance
El Salvador’s treasury has successfully accumulated 2,381 bitcoins, bought at an average price of $44,292 each. Alongside its cryptocurrency achievements, the nation has also experienced a notable improvement in its bond market. Data from FactSet reveals that a debt due in 2052 has surged, now trading above 80 cents on the dollar. This rise reflects growing investor confidence and a positive outlook on El Salvador’s financial health and its pioneering embrace of Bitcoin as part of its economic strategy.
