El Salvador's cryptocurrency treasury has seen a surge in value exceeding $200 million, with recent government initiatives further bolstering the situation.
The purchase of bitcoins under President Nayib Bukele's administration is proving successful for the country, which now attributes a 70% profit following the recent rise in bitcoin's value compared to the average purchase price.
Thanks to the recent growth of bitcoin, reaching a new all-time high above $72,000 on March 11, the value of El Salvador's cryptocurrency reserves on the Nayib Tracker portal has risen to $85 million.
This Central American nation began buying bitcoins in September 2021 when bitcoin was recognized as legal tender. At the time of the initial purchase of 200 coins, bitcoin was trading at $51,769.
President Bukele's strategy came under scrutiny after bitcoin dropped from its peak of $69,000 in November 2021 and subsequently plummeted to $16,000 during the ensuing bear market, causing a significant decline in portfolio value.
However, the situation turned around when in February the BTC price surpassed the average purchase cost of $42,600, signaling a sharp rise into profitable territory.
The portfolio containing 2,861 BTC is currently valued at $207.3 million. President Bukele noted that the profit from bitcoins also includes revenues from the country's passport program, BTC to USD conversion for local businesses, mining revenues, and government services.
In December, El Salvador enacted an immigration law offering fast-track citizenship to foreigners in exchange for donating bitcoins to government social and economic programs.
Several months earlier, in October, the country launched its first bitcoin mining project in collaboration between Volcano Energy and Luxor Technology.
Venture capitalist Tim Draper believes that if bitcoin reaches a price of $100,000, El Salvador could even pay off its debts to the International Monetary Fund and become financially independent.
Bukele was recently re-elected by a wide margin in the February presidential elections and responded to media reports, which often highlighted the country's alleged losses during periods of low bitcoin prices.
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