El Salvador, the Central American nation that made waves by adopting Bitcoin as legal tender, has seen its investment in the cryptocurrency skyrocket. With the latest data from Bitcoin Treasury estimating the government’s Bitcoin holdings to be worth over $150 million, the country is celebrating a significant milestone in embracing digital assets.
Bitcoin holdings surge past $150 million
Since President Nayib Bukele announced the government’s decision to purchase 1 BTC per day, El Salvador has amassed approximately 2,380 BTC. This accumulation has proven wise, with their holdings now exceeding $150 million. The average purchase price of each BTC stands at $44,300, marking a substantial increase from their initial investment.
President Bukele has responded to critics who questioned the viability of El Salvador’s Bitcoin strategy during periods of market downturn.
He pointed out that despite media scrutiny when Bitcoin prices were low, the government now stands to make a profit of over 40% if they were to sell their holdings.
Bukele remains steadfast in his commitment to holding onto Bitcoin, emphasizing that “1 BTC = 1 BTC” regardless of market fluctuations.
El Salvador’s pioneering approach
El Salvador’s decision to adopt a “Bitcoin standard” has garnered global attention, positioning the nation as a trailblazer in cryptocurrency adoption. Despite rumors of other countries considering similar moves, El Salvador stands alone in its official embrace of Bitcoin as a legal tender.
While El Salvador is in charge of adopting Bitcoin, speculation abounds regarding the potential for other nations to follow suit. Samson Mow, CEO of Jan3, anticipates continued adoption by nation-states, corporations, and institutional buyers.
With Bitcoin’s price trajectory showing no signs of slowing down, Mow predicts that price-insensitive buyers, including retail investors, will continue to enter the market.
