Key Points
- El Salvador’s Bitcoin holdings have grown significantly under President Nayib Bukele, now valued at $130.5 million.
- Despite criticism, the country has made unrealized profits from Bitcoin, and continues to integrate it into its national strategy.
El Salvador, under President Nayib Bukele, has seen a significant increase in its Bitcoin holdings. Initially, the country acquired 700 BTC, but by January, the holdings had risen to 2,798 coins, valued at an impressive $130.5 million.
This financial achievement has drawn global attention. President Bukele stated on social media, “We won’t sell, of course; at the end 1 BTC = 1 BTC”. This statement reflects El Salvador’s firm stance on Bitcoin, which has been consistent since its integration into the national strategy in September 2021.
Criticism and Response
Some skeptics have questioned El Salvador’s Bitcoin strategy, considering it a risky investment. In response to these doubts, Bukele pointed out that when Bitcoin’s market price was low, critics wrote numerous articles about the country’s supposed losses.
El Salvador purchased Bitcoin in November 2022 at an average cost of $42,440 per BTC. With the current Bitcoin price hovering around $61,000, Bukele claims that the country has unrealized profits of approximately $40 million.
Whistleblower Edward Snowden noted in a tweet, “A national government will be revealed this year to have been buying Bitcoin—the modern replacement for monetary gold—without having disclosed that fact publicly.”
MicroStrategy’s Bitcoin Strategy
MicroStrategy, like El Salvador, has also shared the benefits of its Bitcoin strategy. The company, led by Michael Saylor, holds a portfolio of 193,000 BTC, valued at over $11.7 billion based on current market prices.
Much like El Salvador, MicroStrategy has no plans to sell its Bitcoin holdings, even as the cryptocurrency’s price continues to reach new all-time highs.
