El Salvador's Bitcoin Holdings Shift into Profit Territory

El Salvador's Bitcoin investment of $131 million yields a net profit of $3.6 million, showcasing a 2.84% gain. President Bukele's commitment to holding Bitcoin remains steadfast, unaffected by market volatility.

Dec 4, 2023 - 17:17
 38
El Salvador's Bitcoin Holdings Shift into Profit Territory
Reading time - 1 min

In a recent update by Salvadoran President Nayib Bukele on December 4, El Salvador's total investment in Bitcoin stands at $131 million, yielding a net profit of $3.6 million, equating to a 2.84% gain. Bukele emphasized that the country has no plans to sell its Bitcoin holdings, viewing price fluctuations as inconsequential to its long-term strategy.

Bukele, who recently stepped down as President of El Salvador to focus on his 2024 reelection campaign, initiated the country's Bitcoin investments during his first term. Starting in September 2021 with an initial investment of $10.3 million, El Salvador's Bitcoin venture saw a significant price drop of over 50% in the ensuing bear market. Despite this, Bukele consistently dollar-cost-averaged the nation's Bitcoin investments throughout 2022, even as the portfolio's value dipped significantly from its original worth.

El Salvador made history in 2021 by becoming the first country to declare Bitcoin as legal tender. The International Monetary Fund has noted that the anticipated risks associated with Bitcoin in El Salvador have not been realized, largely due to its limited adoption within the country. A Cointelegraph reporter's visit to El Salvador last December revealed challenges in using Bitcoin for everyday transactions. Looking ahead, El Salvador is set to incorporate Bitcoin education into its state-run school curriculum next year.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.