The current value of Bitcoin holdings held by the government of El Salvador has exceeded $150 million, according to the latest data from monitoring resource BitcoinTreasuries. This estimate indicates a significant increase of $50 million compared to the initial cost basis. Since Bitcoin was adopted as legal tender in El Salvador in 2022, the country's reserves have experienced a remarkable transformation, transitioning from bear market struggles to record-breaking wealth. President Nayib Bukele's announcement that the government would begin purchasing 1 BTC per day has led to the accumulation of approximately 2,380 BTC, equivalent to $158.5 million.
On March 5, Bitcoin reached an all-time high value of $164.7 million, surpassing El Salvador's total cost base by 53%. The average purchase price per BTC stands at $44,300. In recent statements to X, President Bukele, who was re-elected in February, criticized the mainstream media's portrayal of the government's economic policies. He highlighted the substantial profit potential, with the market price surge resulting in over 40% profit if the Bitcoin holdings were sold. Bukele emphasized the resilience of Bitcoin, asserting that regardless of market fluctuations, 1 BTC always equals 1 BTC.
Despite garnering attention for its adoption of Bitcoin, El Salvador remains an outlier among nation-states embracing the "Bitcoin standard." While no official announcements have been made, rumors suggest that other countries in South America and elsewhere may follow suit. Samson Mow, CEO of Jan3, a company aimed at accelerating the adoption of Bitcoin, is optimistic about nation-state adoption. He believes that as Bitcoin prices continue to rise, buyers, including corporate entities and institutional investors through spot Bitcoin exchange-traded funds, will become increasingly desensitized to price fluctuations, further driving adoption. Mow emphasized the potential role of nation-states as major buyers alongside other institutional investors in driving the growth of Bitcoin adoption globally.
