El Salvador Bitcoin Strategy Now $85M in Profit

El Salvador profits $85M from Bitcoin, showcasing President Bukele’s successful crypto strategy amid a price rally.

El Salvador Bitcoin investment strategy, championed by President Nayib Bukele, has propelled the country into an $85 million profit. This surge comes amidst a Bitcoin price rally, pushing its value beyond the $72,000 mark, a record high as of March 11. El Salvador’s venture into Bitcoin, starting in September 2021 by legalizing it as tender and purchasing 200 coins at $51,769 each, initially faced skepticism. Critics pointed fingers as the value plummeted from a high of $69,000 in November 2021 to a low of $16,000. However, El Salvador’s steadfast approach has now borne fruit, with their Bitcoin stash, totaling 2,861 BTC, valued at approximately $207.3 million.

Strategy and Profits

President Bukele’s investment tactics have weathered the volatile crypto market, bringing El Salvador to a 70% profit margin over their initial cost. This remarkable recovery signifies a strategic win for Bukele, who recently secured a landslide re-election victory. Bukele’s financial strategies extend beyond mere acquisition. Revenue streams from the country’s passport program, local business transactions in BTC to USD conversions, Bitcoin mining, and governmental services have further bolstered the national treasury.

In December, the country introduced a migration law that accelerates citizenship for foreign Bitcoin donors, aiming to support social and economic development. Furthermore, a partnership between Volcano Energy and Luxor Technology marked the launch of El Salvador’s inaugural Bitcoin mining pool in October.

El Salvador’s bold financial maneuvers have caught the eye of venture capitalists like Tim Draper, who speculate that reaching a Bitcoin value of $100,000 could enable the country to clear its International Monetary Fund debts, steering it towards financial sovereignty. President Bukele’s administration has demonstrated resilience against fluctuating market sentiments, maintaining their investment course despite widespread criticism during Bitcoin’s low tides.