President Nayib Bukele’s Bitcoin buying strategy has been paying off for El Salvador, which is now making 70% on the dollar cost average purchase price, following a recent Bitcoin rally.
El Salvador’s crypto treasury is now $85 million in profit, according to the Nayib Tracker website, with Bitcoin prices hitting a new all-time high above $72,000 on March 11.
The Central American nation began buying BTC in September 2021 when it made the asset legal tender in the country. At the time of that first 200-coin purchase, Bitcoin was trading for $51,769.
Bukele’s strategy had been called into question, however, after Bitcoin fell from a peak of $69,000 in November 2021 and then tanked to as low as $16,000 in the bear market that followed, plunging the portfolio deep into the red.
However, it broke even again when BTC prices crossed the dollar cost average of $42,600 in February and has now surged into profit.
The entire portfolio, which contains 2,861 BTC, is currently worth $207.3 million.
On March 12, President Bukele commented that in addition to the profit, there was also Bitcoin revenue from the country’s passport program, revenue from converting BTC to USD for local businesses, revenue from BTC mining, and revenue from government services.
In December, El Salvador approved a migration law granting expedited citizenship to foreigners who make Bitcoin donations toward government social and economic development programs.
Months earlier in October, the nation launched its first Bitcoin mining pool with a partnership between Volcano Energy and Luxor Technology.
Related: El Salvador Bitcoin holdings hit record $164M as BTC profits pass $50M
If Bitcoin reaches $100,000, El Salvador may even be able to pay off loans owed to the International Monetary Fund (IMF), and it is believed that the nation will soon be financially independent, according to venture capitalist Tim Draper.
Bukele was recently re-elected in a landslide Presidential election victory in February. He has also lashed out at the media stating “When Bitcoin’s market price was low, they wrote literally thousands of articles about our supposed losses.”
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