El Salvador has gained 84 million dollars from its Bitcoin strategy

The President of El Salvador, Naib Buquele, proudly displayed the country's Bitcoin (BTC) revenue streams, with his portfolio showing an impressive profit of around $84 million. This announcement comes at a time when Bitcoin has reached an all-time high.

El Salvador's strategic investment in Bitcoin has positioned it as a trailblazer in the digital currency sphere.

El Salvador Bitcoin Strategy

Since 2021, El Salvador has purchased Bitcoin, earning a total of 2,861 BTC each for an average of $42,599. Therefore, these assets are now worth more than $206 million, representing a significant increase in portfolio value of 69.09%. Importantly, the country's gains are not just from market appreciation. It is also generated directly from the sources of revenue from Bitcoin-related innovations.

El Salvador's Bitcoin revenue comes from several key initiatives. These include the country's passport program, BTC-to-USD conversion services for local businesses, government-run Bitcoin mining, and Bitcoin-based government service payments. Such initiatives demonstrate a holistic approach to leveraging cryptocurrency for economic growth.

Read more: Who will have the most Bitcoins in 2024?

El Salvador has also introduced policies to encourage Bitcoin investment. In the year In December 2023, a new immigration law was passed that would grant fast-track citizenship to foreigners who donate Bitcoin to support the country's development.

Buckele's re-election in February underscores public support for his Bitcoin strategy. Despite early criticism, particularly during Bitcoin's bullish period, Buckel did not waver. Challenging the bankruptcy narrative, he pointed out that the media's focus was on the country's temporary failures.

“They lie, lie, lie, and when their lies are exposed, they go into silence mode,” Bukele criticized the mainstream media.

In January, Buckele announced that he had paid off his $800 million debt in full, including interest. This achievement is in line with the government's plans to build a tax-free zone and launch bitcoin bonds. These projects were put on hold due to market volatility but are now set to resume.

El Salvador aims to build a Bitcoin city, revising a proposal during the 2021 bull market. This plan is being strengthened, reflecting the country's determination to become a hub of cryptocurrency innovation.

Crypto investment product earnings

Global interest in Bitcoin and other cryptocurrencies has been highlighted by the latest crypto asset outflow report. According to CoinShares, a record $2.7 billion flowed into crypto assets last week, most of which targeted Bitcoin.

This unprecedented migration is due to several factors, including the US Securities and Exchange Commission's approval of spot bitcoin exchange-traded funds (ETFS) and the anticipation of the upcoming halving event in April, which will halve the supply of new bitcoins.

Since the beginning of the year, nearly $10.3 billion has flowed into crypto assets, bringing the total inflow to $10.6 billion by 2021. BlackRock and Loyalty Investment Space Bitcoin ETFs have attracted investors to the crypto market. These offerings helped balance outflows from Greyscale Investments' Bitcoin ETF after it switched from trust in January.

Read more: Bitcoin Half Cycles and Investment Strategies: What You Need to Know

Despite the recent rise in prices, the report shows continued demand for short Bitcoin positions, which some investors are immune to potential corrections.