Key Points
- El Salvador’s government now holds over $150 million in Bitcoin (BTC).
- Since accepting Bitcoin as legal tender, the nation has seen significant returns on its investments.
The government of El Salvador’s Bitcoin (BTC) holdings have soared to a value of over $150 million.
The latest data shows that the country’s BTC investments have increased by $50 million compared to the initial cost.
Bitcoin’s Journey in El Salvador
Bitcoin was first recognized as legal tender in El Salvador in 2022. Since then, the nation’s Bitcoin holdings have gone from minimal to record-breaking.
President Nayib Bukele announced that the government would start buying 1 BTC per day. As a result, it has accumulated approximately 2,380 BTC (valued at $158.5 million).
On March 5, 2024, when Bitcoin reached new all-time highs, El Salvador’s holdings were worth $164.7 million. This value was a full 53% more than the country’s aggregate cost basis, with each Bitcoin purchased at an average price of $44,300.
Comments and Criticisms
Bukele, who was reelected last month, criticized mainstream media’s perspective on the government’s economic policy. He pointed out that when Bitcoin’s market price was low, many articles were written about their supposed losses. However, now that Bitcoin’s market price has increased significantly, the government stands to make a profit of over 40% if they were to sell.
Despite the attention El Salvador has received for its Bitcoin pivot, it remains the only nation state to have adopted a “Bitcoin standard.” There have been rumors of other countries in South America and beyond following suit, but no official announcements have been made.
Samson Mow, whose company JAN3 aims to “accelerate hyperbitcoinization,” is confident of nation-state adoption in the future. Mow believes nation-states will be one of the key buyers in the future, along with corporations and institutional buyers.
