El Salvador’s President Nayib Bukele has been reaping the rewards of his Bitcoin buying strategy, as the country now enjoys a 70% profit on its dollar cost average purchase price following a recent surge in Bitcoin prices. The country’s crypto treasury has grown by $85 million, reaching a total of $207.3 million, as Bitcoin hit a new all-time high of over $72,000 on March 11. This success comes after El Salvador made Bitcoin legal tender in September 2021 and began buying the asset. Initially, the strategy faced criticism when Bitcoin experienced a significant drop in value, but it has since recovered and entered into profit. President Bukele highlighted that the country has also generated revenue from its passport program, converting BTC to USD for local businesses, Bitcoin mining, and government services. El Salvador’s innovative approach to Bitcoin extends further, as it approved a migration law granting expedited citizenship to foreigners who make Bitcoin donations towards social and economic development programs. In addition, the country launched its first Bitcoin mining pool in partnership with Volcano Energy and Luxor Technology. With its growing Bitcoin holdings, there are even suggestions that El Salvador may be able to pay off its loans to the International Monetary Fund (IMF) if Bitcoin reaches $100,000. Venture capitalist Tim Draper believes that the nation will soon achieve financial independence. President Bukele, who recently won a landslide victory in the Presidential election, has expressed frustration with the media’s focus on the country’s supposed losses when Bitcoin prices were low. Overall, El Salvador’s Bitcoin strategy appears to be paying off, paving the way for a potentially prosperous future.
El Salvador's Bitcoin treasury reaps $85M in profit amidst BTC surge