El Salvador’s Bitcoin portfolio swings to profit

December 4, 2023

[ad_1]

According to a Dec. 4 post by Salvadoran President Nayib Bukele, the country’s cumulative Bitcoin (BTC) investments currently amount to $131 million with a net profit of $3.6 million, for a total gain of 2.84%.

“Of course, we have no intention of selling; that has never been our objective,” said Bukele. “We are fully aware that the price will continue to fluctuate in the future; this doesn’t affect our long-term strategy.”

El Salvador’s #Bitcoin investments are in the black!

After literally thousands of articles and hit pieces that ridiculed our supposed losses, all of which were calculated based on #Bitcoin’s market price at the time…

With the current #Bitcoin market price, if we were to sell… pic.twitter.com/gvl2GfQMfb

— Nayib Bukele (@nayibbukele) December 4, 2023

On Dec. 1, Bukele resigned as the president of El Salvador following approval from the country’s legislative assembly, allowing him to take a leave of absence to focus on his 2024 reelection campaign. During Bukele’s first term as president, the Central American country purchased BTC via its national treasury, starting in September 2021, with an initial investment of $10.3 million. However, the price of Bitcoin soon collapsed by more than 50% amid the bear market.

Despite this, Bukele continued to dollar-cost-average the country’s Bitcoin investments, making repeated purchases throughout 2022. At one point in time, the country’s Bitcoin portfolio fell as low as $45 million from a book value of $103.9 million.

In 2021, El Salvador became the first country to adopt Bitcoin as legal tender. The International Monetary Fund has since warned that Bitcoin’s risks to El Salvador have “not materialized” due to limited adoption in the country. Last December, Cointelegraph reporter Joe Hall traveled to El Salvador and attempted to pay for everyday services using Bitcoin, with disappointing results. By next year, El Salvador plans to introduce Bitcoin education in state-run schools.