El Salvador’s Bitcoin holdings hit $603M after price surge, gaining 123% since January. Elon Musk calls the country’s performance “very impressive.”
After President Nayib Bukele updated El Salvador’s Bitcoin wallet, Tesla CEO Elon Musk called the country’s Bitcoin holdings “impressive” in an X exchange. El Salvador, which became the first country to accept Bitcoin as legal cash in September 2021, has notably increased BTC holdings this year.
The performance of El Salvador’s Bitcoin has impressed Elon Musk.
President Bukele shared a screenshot of the country’s Bitcoin assets after the price jumped past $100,000. The current balance of $603,340,991.00 represents the market worth of El Salvador’s roughly 6,000 BTC. The value of these holdings has increased by 117.74% since January 1, meaning that the year-to-date gain has exceeded 117%. The investment’s overall profit of $326,245,977.98 is a 123.67% increase over the initial investment.
Interestingly, a realized profit of $0.00 indicates that El Salvador has not sold any of its Bitcoin assets. $333,597,190.20 is the unrealized profit, representing possible gains if the securities were liquidated at the current market value. A total of $269,743,800.80 was initially invested in Bitcoin. The volatility and the notable appreciation over time are demonstrated by the portfolio’s peak of $603.34 million and low of $24.77 million.
Musk has a brief but impactful response to this financial update: “Very impressive.”
This is not the first time that Bukele and Musk have interacted on social media. President Bukele outlined several good things in El Salvador under his leadership on October 29. He pointed to drops in government spending, deficits, tax rates, food prices, migration, and crime rates. The value of Bitcoin, economic development, tourism, foreign direct investment, construction, energy generation, military might, image abroad, country risk ratings, bond performance, approval ratings, revenues, and soft power all increased simultaneously, he said.
El Salvador’s adoption of Bitcoin has generated discussion and intrigue worldwide. By adopting Bitcoin, the nation hopes to draw in global investment and increase its independence from the IMF. The enormous unrealized profits imply that this approach is generating sizable financial gains.
In the meantime, Tesla and Bitcoin have had a dynamic relationship. In July 2022, the corporation said it had sold 75% of its holdings, bringing its total to about 11,509 Bitcoin, after initially buying about 42,902 of the cryptocurrency. Tesla still has more Bitcoin than El Salvador, even with this decrease.
But it has been a while since Musk last made a post about Bitcoin in which he used “Bitcoin” or “BTC.” Musk commented, “BTC will make it, but it might be a long winter,” on November 14, 2022. After the FTX collapse, Bitcoin dropped below $16,000 at the time of the post.
Bitcoin was trading at $102,405 at the time of writing.
