El Salvador began purchasing Bitcoin in September 2021, shortly after making it legal tender in the country. The government initially bought around $500 million worth of Bitcoin at prices averaging about $51,000 per coin. Over the following year, they continued to buy Bitcoin periodically, eventually committing to purchasing one BTC every day starting in November 2022.
The key points about El Salvador's Bitcoin acquisition and profits are:
• El Salvador started buying Bitcoin in September 2021 when prices were around $51,000 per coin.
• Over the next year, they made periodic purchases, then committed to buying one BTC daily after the FTX collapse.
• As of November 2024, El Salvador's Bitcoin holdings were valued at $516.43 million, with $100.65 million in unrealized profits (about a 20% gain).
• The country has not sold any of its Bitcoin holdings.
• Their Bitcoin stash has gone from being in a $14 million loss just weeks earlier to a $100+ million profit due to Bitcoin's price surge after Donald Trump's re-election.
• El Salvador has also set up a Bitcoin mining operation powered by geothermal energy from volcanoes.
On his instagram story Nayib Bukele the president of El Salvador shared a screenshot of crypto portfolio with unrealized profit of 305,172,658 USD on their Bitcoin holdings.
So in essence, El Salvador acquired its Bitcoin through a combination of initial large purchases and ongoing daily buys at lower prices, allowing them to capitalize on Bitcoin's subsequent price increases without selling any of their holdings. The strategy has yielded substantial profits for the country so far.
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