El Salvador’s Bitcoin strategy yields 70% profit

The Central American nation’s Bitcoin treasury has seen an $85 million profit as the price of Bitcoin soared to a new all-time high of over $72,000 on March 11. El Salvador began its Bitcoin venture in September 2021, declaring the digital currency legal tender and initiating purchases when Bitcoin was valued at $51,769. Despite initial skepticism due to market fluctuations, the country’s Bitcoin portfolio, which includes 2,861 BTC, is now valued at $207.3 million.

President Bukele has highlighted additional Bitcoin revenue streams for El Salvador, including a citizenship passport program, Bitcoin mining, and government services. These initiatives, along with the conversion of Bitcoin to U.S. dollars for local businesses, have contributed to the nation’s growing Bitcoin earnings. The success of El Salvador’s Bitcoin strategy is a significant development, considering the previous bear market that saw Bitcoin’s value plummet, casting doubt on the country’s investment.

El Salvador’s foray into Bitcoin began with a bold move to adopt the cryptocurrency as legal tender, a decision that was met with both excitement and criticism. The nation’s commitment to Bitcoin extended to various projects, such as the launch of a Bitcoin mining pool in partnership with Volcano Energy and Luxor Technology in October and the approval of a migration law in December that offers expedited citizenship to foreigners who donate Bitcoin to government development programs.

Venture capitalist Tim Draper has suggested that if Bitcoin’s value reaches $100,000, El Salvador could potentially pay off its loans to the International Monetary Fund and achieve financial independence. President Bukele, who was reelected in February, has defended his Bitcoin strategy against media criticism, particularly during periods when the cryptocurrency’s market price was low.