President Nayib Bukele’s Bitcoin buying strategy is paying off for El Salvador, which is now making a profit of $85 million thanks to Bitcoin’s recent rise. The country’s crypto treasury is posting a 70% profit on the average dollar purchase price, with Bitcoin prices reaching a new all-time high in excess of $72,000 on March 11.
Successful Purchasing Strategy
El Salvador began buying BTC in September 2021 when it made the asset a legal currency in the country. At the time of the first purchase of 200 Bitcoins, Bitcoin was trading at $51,769. Although Bukele’s strategy was called into question after a drop in Bitcoin in November 2021, followed by a fall to as low as $16,000, the portfolio returned to equilibrium when BTC prices exceeded the average dollar cost of $42,600 in February, eventually reaching a profit.
Income diversification
In addition to the profit, President Bukele mentioned additional Bitcoin revenues from the country’s passport program, BTC-to-USD conversion for local businesses, BTC mining and government services. In December, El Salvador approved a migration law granting accelerated citizenship to foreigners donating Bitcoin to government social and economic development programs.
Potential financial independence
With a portfolio currently containing 2,861 BTC worth a total of $207.3 million, El Salvador could even repay its loans owed to the International Monetary Fund (IMF) if Bitcoin reaches $100,000. It is envisaged that the country will soon become financially independent, according to venture capitalist Tim Draper.
In conclusion, wise investments in Bitcoin have enabled El Salvador not only to make significant profits, but also to look forward to a more stable and self-sustaining financial future.
