El Salvador, the pioneering country that approved Bitcoin as legal tender, has consistently adhered to its HODL strategy, even amidst the market crash from two years ago and the massive rise toward new ATH this week.
The country initiated its Bitcoin purchases in September 2021, when Bitcoin was valued at $51,769.
El Salvador Boasts Huge Bitcoin Profit
President Nayib Bukele’s Bitcoin strategy was questioned after its value dropped from $69,000 in November 2021 to $16,000 a year later. However, the investment returned to profitability when Bitcoin surpassed the average purchase price of $42,600 in February.
According to its Bitcoin tracker, El Salvador has 2,864 BTC, whose current value is $188 million, acquired across 12 transactions at an average price of $42,630 each. Based on today’s market, Bitcoin has seen a 176% increase over the past year, pushing El Salvador’s unrealized gains to $66 million. The country now stands at a 54% profit from its original investment.
While the amount is based on public tracking data, it does not account for all the country’s Bitcoin. In a Tuesday post on X, President Nayib Bukele mentioned that the nation received more Bitcoin through additional revenue streams.
These include earnings from a unique citizenship passport scheme that involves converting Bitcoin into U.S. dollars for the benefit of local enterprises, proceeds from BTC mining operations, and income generated from various government-provided services.
Moreover, in December, El Salvador launched its “Freedom VISA” initiative, offering residency to up to 1,000 individuals annually who invest a minimum of $1 million in Bitcoin or Tether (USDT) stablecoins.
El Salvador Transfers its Bitcoin to a Cold Wallet
This week, President Bukele announced on X that the nation had established its inaugural Bitcoin “piggy bank,” securely housed within a vault on their national territory. He shared an image showing a wallet containing 5,689.68 BTC, valued at $406 million.
We’ve decided to transfer a big chunk of our #Bitcoin to a cold wallet, and store that cold wallet in a physical vault within our national territory.
You can call it our first #Bitcoin piggy bank 🇸🇻
It’s not much, but it’s honest work 😂 pic.twitter.com/dqzedykxT1
— Nayib Bukele (@nayibbukele) March 14, 2024
The balance of 5,689 BTC held by El Salvador was accumulated through multiple transactions. An initial transfer of 1,120 BTC, valued at $76.5 million, was executed on March 13, requiring authorization from a 3/5 multi-signature setup, which received approval from four signatories, as reported by Mempool.
The largest transaction involved a transfer of 4,000 BTC, equivalent to $273 million, on March 14, approximately two hours following President Bukele’s news announcement.
For the first time, President Bukele has linked the country’s Bitcoin assets to a specific wallet address, moving away from his usual social media method for updates on the national Bitcoin stockpile.
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