El Salvador’s BTC Bet Pays Off Big, Sees $100M Yield in 24 Hours

• El Salvador’s Bitcoin investment has generated nearly $300 million in unrealized profits as prices surge.
• The country now holds 6,150 BTC, valued at over $433 million, after spending only $137 million on acquisitions.
• In the last 24 hours alone, the portfolio has grown by nearly $100 million.

With Bitcoin trading at an all-time high, El Salvador is sitting on an unrealized profit of nearly $300 million from its Bitcoin investment strategy. Over the past two years, President Nayib Bukele has directed daily purchases of 722 BTC, acquiring them at an average price below $42,000.

El Salvador’s decision to invest in Bitcoin through regular daily purchases is yielding strong results as cryptocurrency prices continue to climb. President Bukele initiated this strategy on November 18, 2022, when Bitcoin was priced at around $51,769—one of its lowest levels in recent years.

This strategy forms part of Bukele’s broader vision to integrate Bitcoin into the country’s financial landscape following its adoption as legal tender in 2021. With Bitcoin now trading above $76,000, the value of El Salvador’s holdings has surged.

The timing of these purchases has been key. By buying consistently during a market downturn, El Salvador reduced its average Bitcoin cost, which is now significantly below the current market price.

This disciplined approach has allowed the country to benefit from the recent rally in cryptocurrency prices, which have reached levels not seen since the peak of the 2021 bull market.

$100 Million Gain in One Day

According to records from a tracking platform, El Salvador now holds 6,150 BTC, valued at over $433 million. Remarkably, the country has spent just $137 million to acquire this portfolio, meaning its unrealized profit stands at around $296 million. In the last 24 hours alone, the portfolio has grown by nearly $100 million.

El Salvador’s Bitcoin Strategy

In September 2021, El Salvador made history by becoming the first country to adopt Bitcoin as legal tender alongside the U.S. dollar. This move came despite warnings from the International Monetary Fund (IMF). Since then, the country has continued acquiring Bitcoin through purchases and mining while generating revenue from Bitcoin-related initiatives.

Venture capitalist Tim Draper expressed confidence that Bitcoin will help transform El Salvador into one of the wealthiest nations in the world. Last month, President Bukele reaffirmed that the country has no intention of selling its Bitcoin holdings, underscoring his belief that “at the end, 1 BTC = 1 BTC.”

However, the country’s adoption of Bitcoin has encountered challenges. Despite the recent financial success of its holdings, Bitcoin usage is still limited among Salvadorans, with only about 7.5% reportedly using it for everyday transactions.