El Salvador Bitcoin strategy - how much the country earns
El Salvador's bitcoin holdings soar to $613 million as price surges past $100,
El Salvador’s bold bet on Bitcoin is paying dividends, as the cryptocurrency’s historic rally past $100,000 boosts the country’s holdings to over $610 million.
The milestone puts President Nayib Bukele in the spotlight for his steadfast “1 Bitcoin a day” strategy, despite facing international skepticism, reports Cryptopolitan.
El Salvador’s Bitcoin Holdings Surge in Value
According to Arkham Intelligence, El Salvador’s Bitcoin portfolio now totals 5,995 BTC, purchased at an average price of $45,297 per coin. With Bitcoin trading above $101,000, the country’s investment—initially valued at $269.7 million—has soared to over $613 million, yielding unrealized profits of more than $333 million.
President Bukele celebrated the achievement on X (formerly Twitter), sharing a chart of the country’s portfolio gains. Tech mogul Elon Musk praised El Salvador’s success, calling the investment "impressive." Bukele humorously responded with the caption, “It ain’t much, but it’s honest work.”
El Salvador became the first country to adopt Bitcoin as legal tender in September 2021, sparking global debate. While critics, including the International Monetary Fund (IMF), warned of potential risks, Bukele remained unwavering. His administration doubled down by announcing a daily Bitcoin purchase plan in November 2022.
Bitcoin’s Bull Run Fuels Optimism
Bitcoin’s rally past $100,000 comes amid favorable macroeconomic conditions, including heightened institutional interest and pro-crypto sentiment following Donald Trump’s presidential election victory. The cryptocurrency has gained over 117% year-to-date, further legitimizing El Salvador’s experiment.
Since adopting Bitcoin, the Bukele administration has launched initiatives such as Bitcoin City, a tax-free zone powered by geothermal energy, and Volcano Bonds to fund infrastructure projects. Despite initial protests and warnings from financial watchdogs, the government has focused on using Bitcoin to drive financial inclusion and attract investment.
Challenges and Future Prospects
While El Salvador’s Bitcoin experiment is enjoying a moment of vindication, challenges remain. The IMF continues to urge greater transparency and measures to mitigate risks tied to the asset’s volatility. Nonetheless, El Salvador’s consistent Bitcoin strategy has positioned the country as a global pioneer in cryptocurrency adoption.
As Bitcoin’s price trajectory captures global attention, El Salvador’s gamble may inspire other nations to explore integrating digital assets into their economies. For now, the country stands as a testament to the potential rewards of embracing Bitcoin amid uncertainty.
Recently we wrote, that Cathie Wood, CEO of ARK Invest, expressed her enthusiasm for Bitcoin's rapid growth and its evolving role in the financial ecosystem.
