El Salvador’s President Nayib Bukele has been reaping the rewards of his Bitcoin investment strategy, as the country is now profiting by 70% on its average purchase price. According to the Nayib Tracker website, El Salvador’s crypto treasury has reached a profit of $85 million, thanks to the recent surge in Bitcoin prices, which hit an all-time high of over $72,000 on March 11.
El Salvador began buying Bitcoin in September 2021, after making it legal tender in the country. During the initial purchase of 200 coins, Bitcoin was trading at $51,769. However, Bukele’s strategy faced criticism when Bitcoin’s value plummeted from its peak of $69,000 in November 2021, dropping as low as $16,000 during the subsequent bear market. This caused significant losses in the portfolio.
Nevertheless, the investment portfolio managed to break even when Bitcoin prices surpassed the dollar cost average of $42,600 in February and has now surged into profit. The portfolio, consisting of 2,861 BTC, is currently valued at $207.3 million.
President Bukele highlighted that, in addition to the profit made from Bitcoin, El Salvador has also generated revenue from the country’s passport program, converting BTC to USD for local businesses, Bitcoin mining, and government services.
In December, El Salvador passed a migration law that expedites citizenship for foreigners who make Bitcoin donations towards government programs focused on social and economic development. Additionally, the country launched its first Bitcoin mining pool in October through a partnership between Volcano Energy and Luxor Technology.
There are expectations that if Bitcoin reaches $100,000, El Salvador may be able to pay off its loans to the International Monetary Fund (IMF), potentially leading the nation to financial independence, according to venture capitalist Tim Draper.
President Bukele, who recently won a landslide victory in the presidential election held in February, has criticized the media for their coverage of El Salvador’s Bitcoin investments, stating, “When Bitcoin’s market price was low, they wrote literally thousands of articles about our supposed losses.”
In related news, there is a discussion about the potential benefits of educating children about Bitcoin through books, with some arguing that it could be a valuable tool for their financial literacy and understanding of the digital economy.