As per a post made by El Salvador’s President Nayib Bukele on December 4, the country has invested a total of US$131 million in Bitcoin, resulting in a net profit of US$3.6 million and an overall return of 2.84%. President Bukele emphasized that the country has no intention of selling its Bitcoin holdings, affirming that short-term price volatility will not deter their long-term strategy.
President Bukele, following the approval of the El Salvador Legislative Assembly on December 1, stepped down from his presidential role to focus on his re-election campaign in 2024. During his initial presidential term, El Salvador commenced purchasing BTC through its treasury in September 2021, initially investing $10.3 million. However, the value of Bitcoin experienced a significant drop of over 50% in a bear market.
Despite the market fluctuations, Bukele continued to regularly invest in Bitcoin through dollar-cost averaging in 2022. At one point, the country's Bitcoin holdings decreased from an initial book value of $103.9 million to $45 million.
El Salvador made headlines in 2021 by becoming the first nation to adopt Bitcoin as legal tender. However, the International Monetary Fund (IMF) has cautioned about the risks associated with Bitcoin for El Salvador, citing limited adoption within the country. El Salvador aims to introduce Bitcoin education in public schools by the following year.
