Okay, so picture this: a whole country decides to buy Bitcoin. Not just a few folks, but the actual government. Sounds a bit wild, right? Well, El Salvador did it back in 2021. And now, with Bitcoin prices climbing like a monkey up a coconut tree, that big bet is looking pretty good, at least on paper.
- El Salvador’s government invested in Bitcoin in 2021, and their holdings have significantly increased in value. President Bukele’s strategy is paying off, despite initial skepticism.
- The country’s Bitcoin stash is showing over $357 million in unrealized profit, with a profit margin of 124.4%. They hold roughly 6,181 Bitcoins.
- El Salvador was the first country to make Bitcoin legal tender, aiming to provide financial access to those without bank accounts. The IMF initially opposed this move.
President Nayib Bukele, the guy who pushed for this whole Bitcoin thing, just shared some numbers. He said the country’s Bitcoin stash is showing over $357 million in unrealized profit. Think of unrealized profit like this: you bought something for cheap, its value went way up, but you haven’t sold it yet. So, you haven’t actually put that cash in your pocket, but it looks nice on the balance sheet.
The country put about $287.1 million into Bitcoin over time. Now, that investment is valued at over $644.4 million. That’s a profit margin of 124.4%. Not too shabby, is it? Especially when you consider they’ve added nearly $70 million just this year.
According to El Salvador’s own Bitcoin office, they hold roughly 6,181 Bitcoins. At current prices, that’s worth around $639 million. It’s a significant chunk of change for a relatively small nation.
El Salvador was the first country on Earth to make Bitcoin legal money. That happened in June 2021. The idea was to help people who didn’t have bank accounts get access to money stuff. Since then, they’ve just kept buying more Bitcoin, bit by bit.
Now, this whole Bitcoin adventure hasn’t been without its bumps. The International Monetary Fund (IMF), which is like a big global bank that helps countries with money problems, wasn’t exactly thrilled. They made a deal with El Salvador that included winding down some Bitcoin activities in exchange for financial help.
The country even passed a law in January to make Bitcoin acceptance voluntary for businesses, which was part of the IMF agreement. It seemed like maybe El Salvador would back off its Bitcoin love affair a bit.
But if you thought President Bukele was going to stop buying Bitcoin just because some international body raised an eyebrow, well, you don’t know President Bukele. He’s been pretty clear about his plans.
El Salvador’s bitcoin portfolio is in the black!
After literally thousands of articles and hit pieces that ridiculed our strategy, it’s paying off.
It’s not only the market price, but the social and economic benefit.
Invested: $287,167,055.00
Current Market Value:… https://x.com/nayibbukele/status/1924287351116734550
He said something like, if they didn’t stop buying when the rest of the world was giving them the cold shoulder and even many Bitcoin fans doubted them, they certainly won’t stop now. Or in the future. That sounds pretty determined, doesn’t it?
Meanwhile, Bitcoin itself has been having quite a run. It’s trading around $103,643 right now, but it hit a high of about $106,500 just today. It feels like just yesterday it was bouncing around much lower numbers. This recent jump has people feeling more confident in Bitcoin.
Why the rally? Well, lots of things push crypto prices around. Part of it is just people feeling better about Bitcoin sticking around and being a real thing. Another piece might be related to big global money stuff, like expectations that the trade disagreement between the U.S. and China might get sorted out. Geopolitics, who knew?
So, El Salvador’s big Bitcoin gamble is looking good right now. It’s a wild ride, this crypto world, full of ups and downs. But for now, the numbers are smiling on President Bukele’s bold move.