According to CryptoPotato, El Salvador, the first country to approve Bitcoin as legal tender, has maintained its HODL strategy despite market fluctuations. The nation began purchasing Bitcoin in September 2021 when it was valued at $51,769. President Nayib Bukele's Bitcoin strategy faced skepticism after the cryptocurrency's value dropped from $69,000 in November 2021 to $16,000 a year later. However, the investment returned to profitability when Bitcoin surpassed the average purchase price of $42,600 in February.
El Salvador currently holds 2,864 BTC, worth $188 million, acquired across 12 transactions at an average price of $42,630 each. With a 176% increase in Bitcoin's value over the past year, the country's unrealized gains have reached $66 million, resulting in a 54% profit from its original investment. This figure is based on public tracking data and does not account for all of the nation's Bitcoin holdings. President Bukele has stated that the country has received additional Bitcoin through other revenue streams, such as a unique citizenship passport scheme, proceeds from BTC mining operations, and income generated from various government-provided services.
In December, El Salvador launched its "Freedom VISA" initiative, offering residency to up to 1,000 individuals annually who invest a minimum of $1 million in Bitcoin or Tether (USDT) stablecoins. This week, President Bukele announced the establishment of the nation's first Bitcoin "piggy bank," securely housed within a vault on their national territory. The wallet contains 5,689.68 BTC, valued at $406 million. The balance of 5,689 BTC held by El Salvador was accumulated through multiple transactions, with the largest transaction involving a transfer of 4,000 BTC, equivalent to $273 million, on March 14.
