El Salvador’s President Nayib Bukele is celebrating a 3% return on the country’s bitcoin investment, following a 50% drawdown and two years of missing cash returns by 7%. Bukele took to X (fka Twitter) on Monday to announce that the country’s bitcoin purchases had finally entered positive territory, coinciding with bitcoin’s climb above $40,000 for the first time in over a year.
El Salvador’s bitcoin portfolio has reportedly generated a profit of $3.6 million, prompting Bukele to express satisfaction and take a swipe at media coverage that had criticized the country’s bitcoin strategy. He complained about the “thousands of articles and hit pieces that ridiculed our supposed losses.”
Despite the criticism, Bukele defended El Salvador’s bitcoin adoption, emphasizing that the investment is now “in the black.” With bitcoin’s price hitting a new annual high of over $42,000 in the last seven days, both El Salvador and the cryptocurrency are making headlines again.
“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 our Bitcoin, we would not only recover 100% of our investment but also make a profit of $3,620,277,” Bukele stated on social media, including a screenshot from nayibtracker.com, a website that tracks El Salvador’s bitcoin portfolio.
El Salvador initiated its BTC acquisition strategy in September 2021 as part of the Bitcoin Law. Bukele announced the acquisition of the first 200 coins at that time and later revealed that the country started buying one bitcoin daily in November 2022.
As of now, El Salvador holds 2,762 bitcoins, with an average purchase price of $42,433.42 and a current market value exceeding $115 million. The break-even bitcoin price for El Salvador’s portfolio stands at over $42,500 per BTC.
Despite facing negative reports and challenges, especially during the downtrend of BTC prices since 2021, when it reached its all-time high at $69,040, El Salvador remains steadfast in its commitment to holding bitcoin. President Bukele affirmed, “We have no intention of selling; that has never been our objective. We are fully aware that the price will continue to fluctuate in the future, but this doesn’t affect our long-term strategy.”
It’s worth noting that El Salvador became the first country to declare bitcoin legal tender in 2021. Since then, the nation’s bitcoin adoption has been a focal point globally, with institutions like Santander citing the positive impact of the Bitcoin Law on tourism and investments, coupled with reinforced security in the territory.
Information for this briefing was found via The Wall Street Journal, Forbes, and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.