El Salvador’s Bitcoin Investment Struggles
Despite implementing Bitcoin as legal tender over two years ago, El Salvador is still facing challenges with its crypto bet. This includes the government’s own BTC investments, which are currently underwater due to ill-timed purchases by the president.
Government’s BTC Holdings
According to the Nayib Bukele Portfolio Tracker website, the government currently owns 3,124 BTC worth $118.3 million. However, the bank managing the funds has remained tight-lipped about the exact amount of BTC held.
President’s Ill-Timed Buys
The website estimates El Salvador’s BTC holdings based on public tweets from President Nayib Bukele. The president made several purchases at average prices of around $52,000 and $59,000, but Bitcoin’s price dropped significantly after each purchase.
Small, Consistent Investments
In November 2022, President Bukele vowed to purchase one Bitcoin per day. Since then, the nation has bought 374 BTC. With Bitcoin’s appreciation since last year, El Salvador’s overall investment has risen 45%, offsetting some of its earlier losses.
MicroStrategy’s Successful BTC Investment
In contrast to El Salvador, MicroStrategy’s BTC ownership is verifiable through its financial reports. The company has made significant profits from its 158,400 BTC stack, which is now worth over $6 billion.
Hot Take: El Salvador’s Risky Financial Maneuver
El Salvador’s decision to adopt Bitcoin as legal tender was a risky financial move that has yet to pay off. The government’s BTC investments have suffered due to ill-timed buys by the president. While small, consistent purchases have helped offset some losses, El Salvador’s overall investment is still struggling. In contrast, MicroStrategy’s BTC investment has been successful, resulting in significant profits. This highlights the importance of careful decision-making and timing in the volatile world of cryptocurrencies.
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