El Salvador’s President Nayib Bukele has been reaping the rewards of his Bitcoin buying strategy, with the country now making a 70% profit on its dollar cost average purchase price. The latest Bitcoin rally has resulted in El Salvador’s crypto treasury reaching a profit of $85 million, as reported by the Nayib Tracker website. On March 11, Bitcoin prices hit an all-time high above $72,000.
El Salvador first started purchasing BTC in September 2021 when it made the cryptocurrency legal tender in the country. The initial purchase of 200 coins was made when Bitcoin was trading at $51,769. However, Bukele’s strategy came under scrutiny when Bitcoin experienced a significant drop from its peak of $69,000 in November 2021, reaching as low as $16,000 in the subsequent bear market. This caused the portfolio to suffer significant losses.
Despite this setback, the portfolio managed to break even in February when BTC prices surpassed the dollar cost average of $42,600. It has now surged into profit. The total portfolio, consisting of 2,861 BTC, is currently valued at $207.3 million.
President Bukele highlighted that in addition to the profit from Bitcoin, El Salvador also generates revenue from various sources. These include the country’s passport program, converting BTC to USD for local businesses, Bitcoin mining, and government services.
In December, El Salvador implemented a migration law that grants expedited citizenship to foreigners who make Bitcoin donations for government social and economic development programs. Additionally, in October, the nation launched its first Bitcoin mining pool through a partnership between Volcano Energy and Luxor Technology.
There are hopes that if Bitcoin reaches $100,000, El Salvador will be able to pay off its loans to the International Monetary Fund (IMF). Venture capitalist Tim Draper believes that the country will soon achieve financial independence. Bukele, who was recently re-elected in February, has criticized the media for their coverage of El Salvador’s Bitcoin strategy, particularly during the period of low market prices.
In conclusion, El Salvador’s Bitcoin buying strategy has proven successful, resulting in substantial profits for the country. With Bitcoin prices reaching new highs, President Bukele’s vision for financial independence seems to be within reach.