El Salvador’s #Bitcoin treasury is now $85M in profit amid $BTC rally
El Salvador's Bitcoin reserve has surged past the $200 million mark, signaling significant returns on President Nayib Bukele's strategic investment approach. With recent rallies in Bitcoin's value, the nation's crypto treasury has reaped substantial profits, boasting a remarkable 70% gain on its dollar-cost average purchase price.
According to data from the Nayib Tracker website, El Salvador's crypto treasury is now in the green with an impressive $85 million profit. This financial milestone coincided with Bitcoin's new all-time high, surpassing $72,000 on March 11.
El Salvador embarked on its Bitcoin acquisition journey in September 2021 when it adopted the #cryptocurrency as legal tender. Initially purchasing 200 coins at a price of $51,769 each, the nation's investment strategy faced scrutiny amidst Bitcoin's subsequent price fluctuations. Following a market downturn that saw Bitcoin plummet to as low as $16,000, concerns arose regarding the viability of Bukele's approach.
However, the tide turned as Bitcoin prices rebounded, surpassing the dollar-cost average threshold of $42,600 in February & propelling El Salvador's portfolio into profitable territory. Presently holding 2,861 BTC, the entire portfolio boasts a valuation of $207.3 million.
President #Bukele highlighted additional sources of Bitcoin revenue, including proceeds from the country's passport program, conversion of BTC to USD for local businesses, income from BTC #Mining , & revenue generated from government services.
El Salvador offers expedited citizenship to Bitcoin donors, aiming to boost adoption. It launched a Bitcoin mining pool with Volcano Energy & Luxor Technology, reinforcing its crypto integration. Speculation suggests it could use Bitcoin gains to repay IMF loans, hinted by venture capitalist Tim Draper. President Bukele's re-election victory in February highlights public support, though he's criticized negative media coverage during Bitcoin market downturns.
Source - cointelegraph.com
