El Salvador Profits from Bitcoin Investment as BTC Surges Past $60,000
El Salvador has been a pioneer in the crypto industry, becoming the first country to add Bitcoin (BTC) to its reserves. Despite facing losses during the bear market, the tide has turned for the country as Bitcoin recently surpassed $60,000, putting El Salvador back in profit.
Not Selling Despite 40% Gain
El Salvadorโs president, Nayib Bukele, has revealed that the countryโs Bitcoin investment has seen significant gains of over 40%. However, despite these profits, Bukele has no plans to sell. He believes that 1 BTC is equal to 1 BTC and that is what matters.
Bukele also criticized the media for focusing on the countryโs previous losses and not highlighting their current gains. He pointed out that those who were critical of El Salvadorโs Bitcoin investment are now silent.
El Salvador began buying Bitcoin in 2021 after making it legal tender. Over time, the country increased its Bitcoin holdings, lowering the average cost of its investment.
The majority of El Salvadorโs BTC holdings were acquired in recent years. However, President Nayib Bukele revealed that the countryโs Bitcoin citizenship program is now its main source of BTC income.
Countries With Largest Bitcoin Holdings
While El Salvador holds a significant amount of Bitcoin, it is not the country with the largest BTC holdings. The United States holds that title, followed by China. Interestingly, these countries did not purchase their BTC holdings but obtained them through seizures related to criminal activities.
The United States currently holds over 207,000 BTC, making it the country with the largest Bitcoin holdings. China comes in second with over 194,000 BTC. Germany holds the third position with 50,000 BTC, followed by the Ukrainian government with 46,351 BTC. El Salvador surpasses Finland, which holds around 1,981 BTC.
When it comes to Bitcoin investments, MicroStrategy leads the way. The company has been selling shares since 2020 and using the proceeds to buy Bitcoin. At present, MicroStrategy holds 193,000 BTC after its recent purchase of 3,000 BTC. With a total value of $12.117 billion and a cost basis of $6.087 billion, the company has made over $6 billion in profit.
Hot Take: El Salvadorโs Bitcoin Investment Pays Off
El Salvadorโs decision to invest in Bitcoin has proven to be profitable as the cryptocurrencyโs price continues to rise. Despite initial losses during the bear market, the recent surge in BTC value has put El Salvador back in profit.
President Nayib Bukele remains steadfast in his commitment to holding onto their Bitcoin investment, emphasizing that the value of 1 BTC is what truly matters. With gains of over 40%, El Salvadorโs decision not to sell demonstrates their long-term belief in Bitcoinโs potential.
As one of the countries with significant Bitcoin holdings, El Salvador stands alongside global giants like the United States and China. While these countries obtained their holdings through different means, El Salvadorโs proactive approach to adopting Bitcoin sets it apart.
The success of El Salvadorโs Bitcoin investment serves as an example for other nations considering embracing cryptocurrencies. It highlights the potential for growth and profitability in this emerging asset class.
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