Bitcoin investment in El Salvador turns positive with unrealized gains of approximately 530 million yen
Bitcoin investment profits
El Salvador’s President Najib Bukele announced on the 4th that unrealized gains on the country’s cryptocurrency investment in Bitcoin (BTC) have turned positive.
El Salvador’s #Bitcoin investments are in the black!
After literally thousands of articles and hit pieces that ridiculed our supposed losses, all of which were calculated based on #Bitcoin‘s market price at the time…
With the current #Bitcoin market price, if we were to sell… pic.twitter.com/gvl2GfQMfb
— Nayib Bukele (@nayibukele) December 4, 2023
At the time of publication, the company claims to have made a profit of approximately 530 million yen ($3.62 million), with a profit margin of +2.84%. Although profits have turned positive, Bukele says he has no intention of selling.
As in the past, he explained that El Salvador’s objective is not to sell immediately once profits turn positive. He said his long-term investment strategy remains unchanged as he believes the Bitcoin price will continue to fluctuate.
connection: Prediction of Bitcoin reaching $125,000 in 2024, Matrixport analysis based on halving
And while thousands of news reports have reported on the country’s unrealized losses, they stress that they are only based on the current price of Bitcoin.
Trends in El Salvador
El Salvador is said to have become the first government in the world to purchase Bitcoin in September 2021. After that, the Bitcoin price hit a new all-time high in November 2021, but the virtual currency entered a winter period due to the effects of the Tera scandal and the bankruptcy of FTX.
On the other hand, Bitcoin prices are currently on an upward trend due to the approval of spot ETFs (exchange traded funds) in the US, interest rate cuts, and expectations for next year’s halving.
connection: Learn about Bitcoin ETFs from the beginning: Explain the advantages and disadvantages of investing and how to buy US stocks
The country not only invests in Bitcoin, but also allows it to be used as legal tender alongside the US dollar under the Bitcoin Act. El Salvador, which has actively adopted Bitcoin, has been criticized by the International Monetary Fund (IMF) and others, but Mr. Bukele’s stance does not seem to have changed. In November 2022, right after the FTX bankruptcy, he declared that he would purchase 1 BTC every day.
The government held 2,381 BTC (current value = $99.81 million) at an average acquisition price of $44,300 (mainly purchases in 2021) as of November 2022, when FTX went bankrupt, but how has the portfolio changed since then? It seems uncertain whether it has changed.
connection: President of El Salvador “Purchase 1 BTC every dayâ€
Earlier this month, it was announced that Bukele would step away from presidential duties for six months in preparation for the 2024 presidential election. The leave of absence does not sever Bukele’s ties to his presidency, but suspends him from exercising his powers and official functions.
connection: El Salvador’s President Bukele to step down from office in anticipation of re-election in 2024
What is Bitcoin Law?
El Salvador’s Bitcoin Law recognizes Bitcoin as legal tender, along with the US dollar, and stipulates that it can be used in all payment situations.
Virtual currency glossary
connection: I went to El Salvador where Bitcoin became legal currency | Experience contribution 1
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