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Bukele’s Bitcoin Strategy Pays Off: Reaps $333M Profit for El Salvador

Published 05/12/2024, 12:40
Updated 05/12/2024, 17:45
Bukele’s Bitcoin Strategy Pays Off: Reaps $333M Profit for El Salvador
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  • El Salvador’s Bitcoin portfolio reaches $603M, yielding a $333M unrealized profit.
  • Bitcoin surpasses $100K, contributing to a 117.7% portfolio growth this year.
  • President Bukele celebrates the success, with Elon Musk praising the strategy as “impressive.”

El Salvador President Nayib Bukele is proudly celebrating the success of the country’s Bitcoin strategy, responding to critics as its Bitcoin reserve reaches an unprecedented valuation. This comes as Bitcoin finally surpasses the highly anticipated $100K mark.

In a post on X today, Bukele revealed specific details about El Salvador’s Bitcoin portfolio, showing that the country now holds $603.34 million in Bitcoin. Notably, El Salvador spent $269.74 million to acquire its Bitcoin reserve. Accordingly, the country is sitting on an unrealized profit of $333.60 million after holding the assets for three years.

A significant portion of these gains happened this year, with the portfolio growing by 117.7% since January. This closely aligns with Bitcoin’s year-to-date growth of 141%.

El Salvador’s Bitcoin Strategy Journey

When El Salvador first adopted Bitcoin in 2021, the country faced resistance. Critics focused on the potential risks rather than benefits. These concerns seemed justified when the value of El Salvador’s Bitcoin portfolio plummeted during the bear markets of 2022 and 2023.

However, President Bukele stood firm, continuing to accumulate Bitcoin despite the losses and criticism. Now, with the ongoing bull market, the bold decision is paying off. Even Elon Musk has praised El Salvador’s approach, calling it “impressive.”

Bitcoin reached an all-time high of $103,900 today, pushing its market capitalization beyond $2 trillion. It is now the seventh most valuable asset globally.

MicroStrategy’s Bitcoin Portfolio Hits $41B

Meanwhile, MicroStrategy, led by chairman Michael Saylor, is also seeing remarkable growth in its Bitcoin portfolio. The company’s portfolio is valued at $41 billion, following a $23.48 billion investment in 402,100 Bitcoin over the past four years. To celebrate this milestone, Saylor is planning a “100K party” to mark Bitcoin’s recent achievement.

The post Bukele’s Bitcoin Strategy Pays Off: Reaps $333M Profit for El Salvador appeared first on Coin Edition.

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