El Salvador’s Bitcoin HODL Strategy Pays Off as Country Sees 55% Profit

El Salvador, the pioneer country to adopt Bitcoin as legal tender, has consistently maintained its HODL strategy even through the market crash of two years ago and this week's sharp rise to a new ATH.

The country started its Bitcoin purchases in September 2021, when Bitcoin was valued at $51,769.

El Salvador boasts high Bitcoin profits.

President Nayeb Bukel's Bitcoin Strategy An inquiry was made in November 2021 after the price dropped from $69,000 to $16,000 a year later. However, the investment returned to profitability when Bitcoin surpassed its average purchase price of $42,600 in February.

According to the Bitcoin tracker, El Salvador has 2,864 BTC with a current value of $188 million, acquired in 12 transactions at $42,630 each. Based on today's market, Bitcoin has seen a 176% increase in the past year, pushing El Salvador's undisclosed profit to $66 million. The country has now made a 54 percent return on its initial investment.

While the rate is based on public tracking data, it does not account for all of the nation's bitcoins. In an article on X on Tuesday, President Naib Bukele mentioned that the country has received more bitcoins using additional sources of revenue.

These include converting bitcoins into US dollars for the benefit of domestic enterprises, a special citizenship passport scheme that includes revenue from BTC mining operations and various government services.

Moreover, in December, El Salvador launched the “Freedom VISA” initiative, offering residency to up to 1,000 individuals who annually invest at least $1 million in Bitcoin or Tether (USDT) stablecoins.

El Salvador transfers Bitcoin to a cold wallet

This week, President Buccele announced on X that the country had set up its first Bitcoin “piggy bank” to be safely deposited on its national territory. He shared an image showing a wallet containing 5,689.68 BTC worth $406 million.

We have decided to transfer a large chunk of our #Bitcoin to a cold wallet, and store that cold wallet in physical storage within our national territory.

You can call it the first #Bitcoin piggy bank 🇸🇻.

Not much but honest work pic.twitter.com/dqzedykxT1

— Naib Bukele (@naibbukele) March 14, 2024

The balance of 5,689 BTC held by El Salvador was accumulated through many transactions. The first transfer of 1,120 BTC for $76.5 million took place on March 13, according to Mempool.

The largest transaction involved the transfer of 4,000 BTC worth $273 million on March 14, two hours after President Buckel's news announcement.

For the first time, President Bukele was able to link the nation's Bitcoin assets to a specific wallet address, using traditional social media methods to update the nation's Bitcoin reserves.