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Over two years since the adoption of Bitcoin (BTC) as legal tender, El Salvador’s significant crypto gamble is still encountering challenges, including the government’s own BTC investments that appear to be in a loss position due to poorly timed purchases by the president.
As per the Nayib Bukele Portfolio Tracker website, the government presently holds 3,124 BTC valued at $118.3 million. This reflects a 6.44% decrease, equivalent to $8.1 million, from the nation’s initial cost basis.
Determining the exact BTC holdings of El Salvador has proven challenging as the bank overseeing the government’s Bitcoin funds has maintained a notably reserved stance on the matter.
However, the Nayib Bukele Portfolio Tracker website provides an approximate calculation based on numerous public tweets from El Salvador’s president, Nayib Bukele, which include specific amounts and purchase prices for the nation’s BTC investments.
The government initiated its BTC purchases between September 6 and 7, coinciding with the currency’s establishment as legal tender. Acquired at an average price of around $52,000, Bitcoin’s value swiftly dropped to $43,000 within a few days.
Although the value later surged to as high as $69,000 by November 2021, the president continued to acquire BTC at various points over the following months. Notably, between October and November 2021, Bukele purchased 520 BTC in two transactions at approximately $59,000 each, under the belief of consistently “buying the dip.”
Modest and Regular Contributions
His announcements of Bitcoin purchases dwindled in size and frequency until November 2022. Following Bitcoin’s drop to under $17,000 post-FTX’s collapse, Bukele committed to acquiring one Bitcoin daily from that point forward.
If he stayed true to his commitment, the nation has acquired 374 BTC since that period. With Bitcoin appreciating by 128% since the previous year, El Salvador’s overall investment has surged by 45% since then, compensating for a significant portion of its earlier losses.
The unconventional leader once asserted that he conducted digital currency trades using public funds from his mobile phone, sometimes in unconventional settings like being “naked” and “while in the toilet.”
The tracker’s affiliated website, saylortracker.com, monitors the portfolio of MicroStrategy, whose outspoken chairman, adorned with laser eyes, proudly discusses his company’s BTC investments.
Unlike El Salvador, MicroStrategy’s BTC ownership is verifiable through its quarterly financial reports. Furthermore, it’s substantially profitable, boasting $1.28 billion in gains on its substantial 158,400 BTC holdings, now valued at over $6 billion.