El Salvador’s President Nayib Bukele announced through social media that the country has gained over $300 million in non-realized gains from its Bitcoin investments, following the surge of the digital currency beyond the $100,000 threshold.
Bukele responded to Autism Capital’s request to reveal El Salvador’s Bitcoin portfolio, demonstrating the country’s holdings even as Bitcoin marked its first-ever leap over $100,000 on December 5. To date, El Salvador has invested roughly $270 million in Bitcoin purchase, Jesus Bukele’s report showed, and has yet to sell any Bitcoins, with non-realized gains topping $333 million.
El Salvador made history as the maiden country to recognize Bitcoin as legal tender on September 7, 2021, with its Bitcoin law coming into effect, sanctioning the digital coin as an accepted currency for financial transactions within the country. The preceding day, the government carried out its initial purchase of 200 BTC. El Salvador has since maintained steady Bitcoin acquisition with Bukele declaring on November 17, 2022, a dollar-cost averaging strategy that would involve daily purchases of one Bitcoin.
The Nayib Tracker platform, exclusively monitoring the country’s Bitcoin investments, reveals El Salvador’s possession of 6,180 BTC, with an estimated average purchase price of $44,739.88 per Bitcoin, indicating a 122% increase based on prevailing market prices. Adoption of Bitcoin has yielded numerous benefits for the country such as a boost in tourism.
However, the International Monetary Fund (IMF) has repeatedly cautioned El Salvador to reassess its Bitcoin policies, even as the country enjoys reported achievements. The IMF suggested on January 25, 2022, that El Salvador withdraw its recognition of Bitcoin as legal tender, pointing to financial stability risks while conceding the potential for broader financial inclusion. The appeal was reiterated on October 3, with IMF’s communications director, Julie Kozack, advising the reduction of the Bitcoin law’s reach and limiting the public sector’s exposure to Bitcoin.