El Salvador Reports Profit on Bitcoin Investments
According to a post by Salvadoran President Nayib Bukele on December 4, El Salvador’s cumulative Bitcoin investments currently amount to $131 million with a net profit of $3.6 million, resulting in a total gain of 2.84%.
“Of course, we have no intention of selling; that has never been our objective,” said Bukele. “We are fully aware that the price will continue to fluctuate in the future; this doesn’t affect our long-term strategy.”
On December 1, Bukele resigned as the president of El Salvador, allowing him to focus on his 2024 reelection campaign. During his first term, the country purchased BTC via its national treasury, starting with an initial investment of $10.3 million in September 2021. However, the price of Bitcoin soon collapsed by more than 50% amid the bear market.
Despite the decline, Bukele continued to dollar-cost-average the country’s Bitcoin investments, making repeated purchases throughout 2022. At one point, the country’s Bitcoin portfolio fell as low as $45 million from a book value of $103.9 million.
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender. The International Monetary Fund has since stated that Bitcoin’s risks to El Salvador have “not materialized” due to limited adoption in the country. El Salvador plans to introduce Bitcoin education in state-run schools by next year.
El Salvador’s Bitcoin investments have turned profitable, with a net gain of 2.84% and a current portfolio value of $131 million. Despite the price fluctuations, President Nayib Bukele remains committed to the long-term strategy of holding Bitcoin as a national asset. As the first country to adopt Bitcoin as legal tender, El Salvador continues to explore the potential of cryptocurrency in its economy, including plans to introduce Bitcoin education in schools.