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Crypto News


EL SALVADOR’S BITCOIN HOLDINGS SOAR FOLLOWING $100K PRICE MILESTONE

Austin Mwendia
Crypto Writer
Fact Checked by Joshua Downes
Last updated: December 05, 2024
Disclosure
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Highlights:

 * El Salvador’s Bitcoin holdings have surged to over 600 million dollars after
   Bitcoin surpassed 100k.
 * The country invested 269 million dollars in Bitcoin and has seen a 117.74%
   increase in value.
 * Despite criticism, El Salvador continues its Bitcoin strategy including a
   Bitcoin City and mining project.

El Salvador’s Bitcoin holdings have reached an all-time high in unrealized
profits. President Nayib Bukele announced the news on December 5. The portfolio
now exceeds $600 million, according to a post on X. 

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The announcement followed Bitcoin’s historic price surge past $100,000. Bukele
revealed that initially, the country invested $269.7 million into Bitcoin. This
is an attractive 117.74% increase in value.

The government owns 5,955 Bitcoin which it bought at an average price of $45,297
per coin. These holdings have risen significantly in value due to current market
prices. With Bitcoin’s price hitting over $103,000, the unrealized profit
exceeds $335 million. Unrealized profit reflects the difference between purchase
cost and market value.  


UNREALIZED PROFITS HIGHLIGHT BITCOIN’S ROLE IN NATIONAL ECONOMY

El Salvador became the first country to adopt Bitcoin as legal tender in 2021.
The decision came under attack from the IMF and other financial organizations.
Experts have warned against the volatility in cryptocurrency investments.
Despite this, the administration has continued with its Bitcoin strategy.  

The government has also begun a program to integrate Bitcoin into the economy.
This includes a “Bitcoin City” and plans to mine Bitcoin with geothermal energy.
The administration aims to reduce remittance costs and increase financial
inclusion. Bukele has also rolled out a program for public officials to learn
how to use Bitcoin.  


GLOBAL REACTIONS TO THE CRYPTO STRATEGY

Elon Musk has praised the country’s great gains. In a recent post on X, Musk
praised the ‘impressive’ Bitcoin portfolio of El Salvador. The comment has drawn
further interest in the country’s approach.  





Director of the El Salvador Bitcoin Office, Stacy Herbert, has praised the team
behind this success. Blockchain data confirms that the government is continuing
with its daily Bitcoin purchase strategy.  

International organizations are still cautious despite the success of Bitcoin.
The IMF called on El Salvador to provide more transparency in its Bitcoin
adoption. Economics critics worry cryptocurrency could raise economic risk.
However, Bukele’s administration continues to be optimistic about Bitcoin’s role
in the economy.  

According to Peter Schiff, Bitcoin depends on the government for its survival.
Schiff has warned that the government could destabilize the market by selling
seized Bitcoin. Bitcoin, he said, has no intrinsic value and is still
speculative compared to gold. 





In his view, gold is a more secure, more reliable asset for long term wealth
preservation. Schiff’s critique raises questions about cryptocurrency’s
sustainability and broader economic implications that still exist.


NEXTBRIDGE COMPLETES $30 MILLION TOKENIZED T-BILL SALE

NextBridge, an El Salvador-based platform has closed a $30 million sale of
tokenized U.S. Treasury bills (T-bills). The tokens are issued on the Bitcoin
blockchain using the Liquid Network and represent fractional ownership of U.S.
T-bills. Investors subscribed via Bitfinex Securities.

Each token represents one share of $200,000,000 worth of planned T-bills
issuances. Retail and institutional investors alike flocked to the sale, showing
a growing interest in blockchain based financial products. From March 2025
redemption options will be available with plans for dynamic order book
subscriptions.

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Bitcoin El Salvador NextBridge Peter Schiff
Author: Austin Mwendia

Austin Mwendia is a passionate crypto journalist with three years of experience.
He has contributed to various media outlets, covering blockchain technology,
market analysis, and financial trends. He is committed to educating readers and
expanding the adoption of blockchain and decentralized finance.

View full profile ›


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