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El Salvador President Awaits Recognition of BTC Gains as Bitcoin Price Soars Past $67,000

Last Updated March 8, 2024 3:18 PM
Teuta Franjkovic
Last Updated March 8, 2024 3:18 PM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • If El Salvador sold its Bitcoin today, it would make a huge profit.
  • The country has no plans to sell and is acquiring BTC through its citizenship program.
  • Its bonds are experiencing a significant rise, and President Nayib Bukele enjoys high approval ratings.

If El Salvador were to sell its Bitcoin holdings today, it would make a profit of approximately $41.6 million . Not only that, but it would have also made more than 40% on its investment.

The Central American country’s investment in Bitcoin is now worth more tha $150 million, according to BitcoinTreasuries .

El Salvador’s Bitcoin Venture Yields Over $50 Million in Profits

El Salvador secured around 2,380 BTC at an average cost of $44,300 each. At the peak of Bitcoin’s value on March 5, its investment surged to $164.7 million, reflecting a 53% rise from its total investment cost.

This financial triumph has reignited conversations around the possibility of other countries exploring cryptocurrency adoption. Despite speculation about other nations considering a similar path, there have yet to be any formal declarations to this effect.

El Salvador’s BTC Citizenship Program Fuels Crypto Holdings

Nayib Bukele said  that when Bitcoin’s market price was down, numerous articles were published about El Salvador’s alleged losses.

The president pointed out that, with Bitcoin’s current market price significantly higher than it was, selling now would result in a profit of over 40%.

No Sale Planned

Bukele highlighted that El Salvador’s principal method for acquiring additional Bitcoin has been through its citizenship program.

This initiative accelerates the citizenship process for individuals who contribute a Bitcoin “donation” to the government, though the required donation amount has not been specified. Bukele also emphasized that the country does not plan to sell  its Bitcoin holdings.

El Salvador has amassed its Bitcoin treasury at an average purchase price of $44,292, holding a total of 2,381 Bitcoins.

Bitcoins amassed
Credit: X

Long-term Bonds Experience Significant Uptick

El Salvador’s bonds have witnessed a remarkable increase over the past year, with debt securities maturing in 2052 now trading above 80 cents on the dollar, as reported by FactSet data.

El Salvadro bonds
Credit: FactSet

Aged 42, Nayib Bukele boasts one of the highest approval ratings worldwide, largely because of his aggressive crackdown on gangs.

This approach has significantly reduced homicide rates, following the detainment of more than 76,000 individuals.

Last month, an independent exit poll by CID Gallup  indicated even greater approval for Nayib Bukele, with an estimated 87% of Salvadorans supporting the incumbent.

These findings could make Bukele, who is known for his appeal as a millennial leader, the first president of El Salvador to win re-election since the 1930s.

This potential re-election comes after a contentious decision by judges associated with his party to repeal a ban on consecutive terms, raising alarms about the state of democracy in the country.

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