The country made a large bet on bitcoin precisely a year ago, declaring it legal tender alongside the US dollar and filling its cash reserves with the virtual currency in a series of purchases. On paper, the country seems to be incurring significant losses due to its assets.

Approximately 58% decline in its portfolio

The public does not know how much bitcoin El Salvador currently has because the government has not made the official statistic. However, according to the purchases disclosed by El Salvador's President Nayib Bukele on Twitter since September, the nation has acquired 2,381 bitcoins.

If El Salvador keeps all of them, its portfolio would be down about 58% according to the average purchase cost of the assets when compared to current prices.

The data was gathered using a combination of information posted on Twitter by El Salvador's President Nayib Bukele and bitcoin daily averages on the day of purchase from (where the president did not share the sales price). Amounts were calculated using an earlier September 7 bitcoin price of $18,930. The Nayib Bukele Portfolio Tracker served as the foundation for the methodology.

Only a rough estimate

While the general public assumed for much of the year that El Salvador had kept all of its cryptos, finance minister Alejandro Zelaya revealed in a June interview that the country had managed to sell some to fund the Chivo Pets pet hospital project. However, he insisted that the government accumulated crypto as a strategic plan.

Bukele stated in October that the project would be funded with a portion of a $4 million "surplus" in a government trust fund centered on the currency’s rising value at the time and that no cryptocurrency would be sold for the project. As a result, the exact amount sold by the government is unknown.

The information presented above is based on Bukele's tweets regarding acquiring bitcoin throughout the entire year. According to the Nayib Bukele Portfolio Tracker, which has been tracking the purchases, the country invested more than $107 million in bitcoin and managed to lose more than $61 million, considering the current price of the cryptocurrency.

Sep 8, 2022
Crypto News

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