El Salvador’s investment in Bitcoin has paid off, with the country’s holdings surging past $600 million. President Nayib Bukele shared a screenshot on December 5 showing the value of El Salvador’s Bitcoin holdings had increased by 117.74% to approximately $603 million. The initial investment was around $269.7 million, resulting in an unrealized profit exceeding $335 million.
The term “unrealized profit” refers to the difference between the initial purchase price and the asset’s current market value, which changes with market fluctuations. Despite warnings from international financial organizations, including the IMF, Bukele’s administration has continued accumulating Bitcoin since it was made legal tender in 2021.
The government has introduced initiatives to integrate Bitcoin into the national economy, such as exploring Bitcoin mining using volcanoes and launching a training program for public officials. The crypto community has supported El Salvador’s strategy, citing the significant boost to the country’s financial position.
Notable figures have taken notice of El Salvador’s success, with Elon Musk praising the profits and Tesla’s own Bitcoin holdings retaking the $1 billion mark. Director Stacy Herbert of the El Salvador Bitcoin Office credited a “small team” for their hard work in achieving this success.
Source: https://cryptoslate.com/elon-musk-impressed-by-el-salvadors-over-300-million-unrealized-profit-in-bitcoin