El Salvador Is Sitting on $84M Profit From Its Bitcoin Holdings

El Salvador’s BTC treasury has shown an impressive performance, now reaching $84 million in unrealized profits on the coins purchased since last September.

Image credit:coindesk.com

The Central American nation’s bitcoin treasury now is worth more than $200 million (its reserve increased by 250% compared to the end of last year) according to Bitcoin price index. The gain makes about 69% to the value of the initial investment.

The treasury is now holding 2,681 BTC which were acquired through 12 different purchases made at an average cost of $42,600. This shows the tremendous increase in the worth of the digital assets.

In 2021, Bitcoin became as powerful as USD after the passing of a “Bitcoin Law” whose effect is to give Bitcoin legal tender status in El Salvador, therefore, the first country to recognize Bitcoin as a legal tender.

Then, goods, services, and taxes can now be bought through the country’s Bitcoin network system.

President Nayib Bekele mentioned on Tuesday’s post how besides the Bitcoin revenue, the country has additional Bitcoin earnings through various services from other sectors.

The citizenship passport program, which converts Bitcoin to U.S. dollars and sells the local businesses and mining operations, gains, and income from selling government services are included in the list.

By December, El Salvador announced the “Freedom VISA scheme” with 1000 cryptocurrency investors yearly guaranteed residency who present stable coins either in Bitcoin or USDT. According to a report, successful applicants are rewarded with long-term residency and a clear path to full citizenship.

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