El Salvador Is Sitting on an Unrealized Profit of Nearly $300 Million from Its Bitcoin Investment Strategy
- Barbara StreisandOriginal
- 2024-11-09 03:30:10652browse
With Bitcoin trading at an all-time high, El Salvador is sitting on an unrealized profit of nearly $300 million from its Bitcoin investment strategy.
El Salvador's Bitcoin investment strategy, which began two years ago with daily purchases of 722 BTC, has now yielded an unrealized profit of nearly $300 million. This strategy, initiated when Bitcoin was priced at around $51,769, has proven successful as the cryptocurrency's value has surged to over $76,000.
President Nayib Bukele's vision to integrate Bitcoin into El Salvador's financial landscape has paid off, with the country now sitting on a portfolio of 6,150 BTC, valued at over $433 million. This portfolio was acquired at an average price of less than $42,000, resulting in a total cost of around $137 million and an unrealized profit of $296 million.
The timing of these purchases has been crucial, as El Salvador was able to reduce its average Bitcoin cost by buying consistently during a market downturn. This strategy has now positioned the country to benefit from the recent rally in cryptocurrency prices, which have reached levels not seen since the peak of the 2021 bull market.
Over the past 24 hours, El Salvador's Bitcoin portfolio has seen a rapid increase in value, growing by nearly $100 million. This surge follows a recent announcement by the country that it has generated over $100 million in revenue from Bitcoin-related initiatives.
El Salvador's bold move to adopt Bitcoin as legal tender has brought both opportunities and challenges. While the country's cryptocurrency holdings have enjoyed financial success, Bitcoin usage among Salvadorans remains limited, with only about 7.5% reportedly using it for everyday transactions.
Despite these challenges, President Bukele remains optimistic about El Salvador's future with Bitcoin, stating that the country has "no intention of selling" its holdings and that "at the end, 1 BTC = 1 BTC."
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