El Salvador’s Bold Move into Bitcoin Proves Lucrative

However, the tables have turned. With Bitcoin now soaring to all-time highs, President Bukele’s optimism is palpable. In a recent tweet, he exclaimed, “If we sold now, we would make a profit of more than 40%,” indicating a significant turnaround in the country’s fortunes. As of February 28th, according to the Nayib Bukele tracker, El Salvador possesses 1,853 Bitcoins, valued at $187 million. This translates to a remarkable 54% profit, amounting to approximately $65 million – a substantial gain that Bukele intends to hold onto, affirming, “In the end, 1 BTC = 1 BTC.”

While $65 million is no small sum for a country like El Salvador, it must be viewed in context. With tax revenues totaling around seven billion dollars, Bitcoin profits constitute less than one percent. Nevertheless, they offer a valuable asset that can serve as collateral for obtaining low-interest loans to finance various development projects.

On a grander scale, MicroStrategy, a publicly traded US company renowned for its significant Bitcoin holdings, has seen astronomical gains. Currently, the firm boasts a staggering 193,000 Bitcoins, valued at $12.76 billion. With an average purchase price exceeding $30,000, MicroStrategy has realized a remarkable profit of 108%, totaling $6.5 billion. This remarkable success underscores the efficacy of the Bitcoin strategy for MicroStrategy and its CEO, Michael Saylor.

Notably, MicroStrategy’s stock has also reached unprecedented heights, with a share price of $1,172 and a market capitalization of approximately $20 billion. Bitcoin holdings now constitute more than half of the company’s overall value, signaling the profound impact of its Bitcoin investment strategy.