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El Salvador continues to reap significant returns by accepting Bitcoin (BTC) as a legal payment method. According to recent data, the country’s Bitcoin treasury has now brought in an impressive $84 million in unrealized profits.
Facing a 69% Unrealized Profit
The Central American country, which first announced its Bitcoin purchase in September 2021, has seen a significant increase in value thanks to the largest cryptocurrency’s astonishing 250% rise last year. This increase has brought El Salvador’s Bitcoin treasury value to over $206 million today, representing a noteworthy 69% unrealized profit on the initial capital. This profit corresponds to $84 million.
El Salvador’s Bitcoin holdings currently consist of 2,681 BTC. The country’s average purchase price is $42,600, and it has made these acquisitions through 12 separate purchases. This strategic accumulation positions the country to significantly benefit from Bitcoin’s ongoing bull run, demonstrating the potential of cryptocurrencies as a store of value and investment opportunity.
Adopted Bitcoin in 2021
The Central American nation took a historic step in 2021 by adopting Bitcoin as a legal payment method alongside the US dollar, becoming the first country to do so. This milestone was made possible with the enactment of the groundbreaking Bitcoin Law, which paved the way for Bitcoin to be used for various transactions, including goods, services, and tax payments.
President Nayib Bukele pointed to the growing Bitcoin ecosystem in the country, noting that El Salvador is generating additional Bitcoin revenue through various channels. These include income from a citizenship passport program where Bitcoin is converted to US dollars for local businesses, as well as revenue from Bitcoin mining and government services.
Furthermore, El Salvador launched the “Freedom VISA” program in December, offering residency to a maximum of a thousand people per year who invest at least $1 million in BTC or Tether (USDT). Applicants who meet the requirements not only obtain long-term residency permits but also embark on a path to full citizenship as part of the country’s commitment to embracing digital innovation and attracting investment.
