- El Salvador has made over $83 million in profits from the country’s Bitcoin reserves following the BTC price surge.
- The country steadily acquired Bitcoin from the last quarter of 2021 up until late 2022.
- Besides its Bitcoin reserve, the country is racking up Bitcoin revenue from other structures, including its passport program, mining, and government services.
El Salvador is currently swimming in massive profits following Bitcoin’s Recent surge past $72,000. The Central American country has gained over $83.9 million from its Bitcoin reserve after making the revolutionary move to adopt the cryptocurrency as its legal tender back in 2021. The country has ridden with Bitcoin through the dips and is bountifully reaping the rewards of its unwavering belief in Bitcoin.
El Salvador’s Bitcoin Holdings Skyrocket Above 66%, Raking in $83 Million
El Salvador, technically the most Bitcoin-friendly country has its Bitcoin reserve in 66% gains which equals a whopping $83 million. The country has been at the forefront of the crypto revolution and was the first to go all-in on a national level.
Under the government of its current president Nayib Bukele, the country acquired over $121 million or 2,861 BTC between September 2021 and November 2022. The purchase comprised 12 installments at an average dollar cost of $42,599 per BTC.
The country defied the dwindles in the value of Bitcoin within the past two years, instead using the dips as opportunities to scoop up more BTC and enrich its reserve. Fast forward to less than three years later, its faith in Bitcoin’s prospects has paid off with its portfolio now worth over $203 million.
President Bukele has been the subject of public scrutiny because of his Bitcoin-centric financial system, which many analysts and large news outlets like the Economist believed was an easy route to financial doom. When Bitcoin initially started pumping and sent El Salvador’s profits to 40%, Bukele, referring to those outlets said that “when #Bitcoin’s market price was low, they wrote literally thousands of articles about our supposed losses.”
“We won’t sell, or course; at the end 1 BTC = 1 BTC (this was true when the market price was low and it’s true now); but it’s very telling that the authors of those hit pieces, the “analysts”, the “experts”, the “journalists”, are totally silent now.”
Alternative Income Streams Are Also Fuelling El Salvador’s Bitcoin Economy
While El Salvador’s Bitcoin holdings bring it tens of millions in profits, it’s worth knowing that the country has alternative sources of Bitcoin revenue that are also as lucrative. President Bukele via a tweet, reminded the world that his country doesn’t just depend on the Bitcoin reserve; there are other revenue structures built around Bitcoin, that also contribute to the country’s economy.
El Salvador runs one of the world’s largest bitcoin mining farms which runs on the country’s renewable geothermal energy. The mining project was launched in October 2023 and intended to harness the country’s volcanoes to mine bitcoin, which in turn will earn the country Bitcoins.
The country also launched a Citizenship by Investment Program that allows any foreigner to donate Bitcoin to the country and become a citizen. By donating about $1 million in Bitcoin or USDT, people of other nationalities can obtain the Salvadorian Freedom Passport and become citizens within 6 weeks. This citizenship program is open to about 1,000 applicants annually and should tremendously boost the country’s economy.
Bukele also said his country also earns BTC revenue “from government services.” Additionally, more cash inflows come “from converting BTC to USDT for local businesses.” Within five years of becoming El Salvador’s president, Bukele has completely transformed the country’s economy and is also lauded for bringing the country’s murder rate to an all-time low.