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Crypto News

El Salvador’s Bitcoin Bet Pays Off $84 Million Profit

Author

Jay Solano

Tags

Tags Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Category

Crypto News

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

2 mins
Last update

el salvador bitcoin

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Key Takeaways

  • El Salvador’s Bitcoin bet shows early gains sitting around $84M, a 250% Bitcoin price rally pushes treasury value to $206 million.
  • Data reveals that El Salvador has acquired a total of 2,681 Bitcoins through 12 separate purchases, with an average cost per unit of $42,600.
  • El Salvador’s 2021 decision to adopt Bitcoin as legal tender alongside the U.S. dollar continues to be a closely watched experiment.

El Salvador’s gamble on Bitcoin appears to be paying off, at least for now. Since their initial purchase in September 2021, the value of their Bitcoin holdings has skyrocketed. This has resulted in an unrealized profit of $84 million.

Fueled by a 250% price increase in the past year, El Salvador’s Bitcoin treasury now sits at over $206 million. This represents a substantial 69% return on their original investment.

Data reveals that El Salvador has acquired a total of 2,681 Bitcoins through 12 separate purchases, with an average cost per unit of $42,600. While the long-term success of this strategy remains to be seen, the current scenario paints a picture of significant gains for El Salvador’s Bitcoin experiment.

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El Salvador’s 2021 decision to adopt Bitcoin as legal tender alongside the U.S. dollar continues to be a closely watched experiment. Early indications suggest potential benefits.

Following the implementation of the “Bitcoin Law,” the nation has witnessed an increase in its Bitcoin holdings not just through direct purchases, but also through revenue generated from various sources.

  • Citizenship program: This program allows individuals to gain citizenship through investment, with proceeds partially converted to Bitcoin.
  • Bitcoin mining: El Salvador actively promotes Bitcoin mining to further bolster its holdings.
  • Government services: A portion of the revenue collected from government services is reportedly being converted into Bitcoin.

While the long-term success of this strategy remains to be evaluated, this initial phase demonstrates El Salvador’s efforts to diversify its revenue streams and leverage its Bitcoin holdings.