- El Salvador’s long-term Bitcoin strategy yields an unrealized profit of $470 million.
- The country’s Bitcoin reserves now exceed $760 million, with gains fueled by strategic accumulation.
- International interest grows as El Salvador sets a precedent for national crypto holdings.
El Salvador’s ambitious approach to cryptocurrency is drawing global attention as the country reports an unrealized gain of $470 million in its Bitcoin reserves. President Nayib Bukele shared a screenshot of the national Bitcoin holdings, highlighting the dramatic surge in value and emphasizing the success of the country’s long-term investment strategy.
Since 2021, when El Salvador became the first country to recognize Bitcoin as legal tender, the government has been steadily acquiring the cryptocurrency. Bukele’s approach is methodical: purchasing Bitcoin during price dips and holding for the long term. This patience has now produced significant returns, nearly tripling the original investment.
How El Salvador’s Bitcoin holdings soared
President Bukele revealed that the country holds over 6,200 Bitcoins, purchased at an average price of $42,000 per coin, bringing the reserve’s total value to more than $760 million. With Bitcoin’s current price exceeding $120,000, the gains reflect a remarkable profit margin of more than 120 percent since the initial acquisition of 500 BTC.
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El Salvador’s holdings rank among the largest government-controlled Bitcoin reserves globally, showcasing Bukele’s bold financial vision. The $470 million unrealized profit positions the nation as a leading example of a government leveraging cryptocurrency for national investment, potentially serving as a model for other countries exploring digital assets.
The future of crypto in El Salvador’s economy
The substantial Bitcoin gains could support critical national initiatives and help reduce public debt, strengthening investor confidence in El Salvador’s crypto-friendly policies. The country has emerged as a global symbol of innovation in digital currency adoption.
However, challenges remain. Critics warn of Bitcoin’s notorious volatility, with the potential for dramatic price swings to erode profits. Despite this, President Bukele continues to advocate for broader cryptocurrency integration, asserting that the strategic use of Bitcoin can reshape conventional financial management.
El Salvador’s success underscores the potential for governments to rethink national reserves, exploring cryptocurrency as a viable tool for economic growth and innovation.
