El Salvador’s Bitcoin Investment Soars: Bukele Reveals $3 Million Profit

El Salvador’s President Nayib Bukele announced on X on Monday that the country’s bold Bitcoin (BTC) investment is back in the black, with a profit exceeding $3 million. The revelation follows Bitcoin’s rally to the $42,000, and now $44,000.

Addressing critics who previously speculated on the supposed losses incurred by El Salvador’s Bitcoin venture, Bukele stated on X, “After literally thousands of articles and hit pieces that ridiculed our supposed losses… with the current Bitcoin market price, if we were to sell our Bitcoin, we would not only recover 100% of our investment but also make a profit of $3,620,277.” 

The president accompanied his statement with a screenshot from nayibtracker.com, a website monitoring El Salvador’s Bitcoin portfolio.

El Salvador initiated its Bitcoin acquisition strategy in September 2021, aligning with the Bitcoin Law aimed at fostering cryptocurrency adoption. Bukele reminisced on X about the acquisition of the first 200 coins and reported subsequent purchases, including the decision in November 2022 to buy one bitcoin daily.

“We have no intention of selling; that has never been our objective,” Bukele affirmed. “We are fully aware that the price will continue to fluctuate in the future; this doesn’t affect our long-term strategy.”

Having spent over $120 million of El Salvador’s funds on Bitcoin since 2021, Bukele called on critics to issue retractions and apologies on X. Despite stepping down as president this week to campaign for a controversial second term, he remains confident in a victory due to his high popularity in the Central American country.

According to a Bitcoin portfolio tracking website, the 2,764 coins purchased by Bukele now exceed their initial value, potentially yielding a $3.7 million profit if sold at the current market value. Celebrating the success, Bukele declared on X, “El Salvador’s Bitcoin investments are in the black.”

From the fun rumor department… speculation arose in September when the Emir of Qatar visited El Salvador, fueling rumors about the Qatar Sovereign Wealth Fund preparing for a substantial Bitcoin purchase. As of now, this remains speculative, and no concrete information has been confirmed.

El Salvador became the first country to make Bitcoin legal tender in 2021. This decision was driven by the need for an alternative currency since El Salvador uses US dollars as its primary currency but lacks monetary sovereignty. Bitcoin offers benefits for remittances and acts as a hedge against potential devaluation or economic instability caused by external factors.

El Salvador has set up legislation and a regulatory framework for Bitcoin service providers, which has attracted prominent exchanges like Bitfinex and Binance. The country offers a separate company registry and clear language in its regulations to support Bitcoin-related companies. El Salvador’s embrace of Bitcoin as legal tender also provides a ready-made base of users for these companies. Additionally, the country has created a separate framework for digital asset service providers, embracing digital assets other than Bitcoin. El Salvador’s use of geothermal energy from volcanoes for Bitcoin mining adds to its appeal as an innovative hub.

Volcan Capital is ready to assist international capital looking for a geopolitical hedge or growth prospects in this emerging market: in other words, the Singapore or Dubai of 40 years ago.