🌎 El Salvador’s Bitcoin Strategy Pays Off with $85 Million in Profit

El Salvador’s President Nayib Bukele’s Bitcoin (BTC) buying strategy has proven successful, with the country now making 70% on the dollar cost average purchase price following a recent Bitcoin rally. The nation’s crypto treasury is now $85 million in profit, with BTC prices hitting a new all-time high above $72,000 on March 11.

The Central American nation began buying BTC in September 2021 when it made the asset legal tender in the country. The initial 200-coin purchase was made when Bitcoin was trading for $51,769.

Despite facing criticism when Bitcoin prices fell in November 2021, plunging the portfolio into the red, El Salvador’s strategy broke even when BTC prices crossed the dollar cost average of $42,600 in February and has now surged into profit. The entire portfolio, which contains 2,861 BTC, is currently worth $207.3 million.

President Bukele highlighted that in addition to the profit from Bitcoin, there was also revenue from the country’s passport program, converting BTC to United States dollars for local businesses, BTC mining, and government services.

In December, El Salvador approved a migration law granting expedited citizenship to foreigners who make Bitcoin donations toward government programs. The nation also launched its first Bitcoin mining pool in October.

If Bitcoin reaches $100,000, El Salvador may be able to pay off loans owed to the International Monetary Fund, leading to financial independence, according to venture capitalist Tim Draper.

President Bukele, recently reelected in February, has criticized the media for focusing on the country’s losses during Bitcoin’s market price drops.