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In an exchange on X, Tesla CEO Elon Musk described El Salvador’s Bitcoin holdings as “impressive” after President Nayib Bukele shared an update on the country’s BTC wallet. El Salvador, the first nation to adopt Bitcoin as legal tender in September 2021, has witnessed significant growth in its BTC investments year-to-date.
Elon Musk Is Impressed By Bitcoin’s Performance
President Bukele posted a screenshot detailing the nation’s BTC holdings after the price surged above $100,000. The current balance stands at $603,340,991.00, representing the market value of approximately 6,000 BTC owned by El Salvador. Since January 1, there has been a 117.74% increase in the value of these holdings, indicating over 117% growth year-to-date. The total profit from the investment amounts to $326,245,977.98, exceeding the initial investment by 123.67%.
Notably, El Salvador has not sold any of its BTC holdings, as indicated by a realized profit of $0.00. The unrealized profit, representing potential gains if the holdings were sold at the current market value, is $333,597,190.20. The total amount initially invested in Bitcoin is $269,743,800.80. The portfolio has experienced a high of $603.34 million and a low of $24.77 million, illustrating both the volatility and the significant appreciation over time.
Musk’s reaction to this financial update was succinct yet significant: “Impressive.”
This interaction is not the first between Musk and Bukele on social media. On October 29, President Bukele highlighted a series of positive developments in El Salvador during his presidency. He noted declines in crime rates, food prices, migration, government spending, deficits, and tax rates. Concurrently, he reported increases in Bitcoin value, economic growth, tourism, foreign direct investment, construction, energy generation, military power, international image, country risk ratings, bond performance, approval ratings, revenues, and soft power.
Musk responded to this list with: “Super impressive.”
El Salvador’s move to adopt BTC has been a subject of global interest and debate. The country’s adoption of the Bitcoin aims to boost independence from the IMF and attract foreign investment. The substantial unrealized profits suggest that this strategy is yielding significant financial benefits.
Meanwhile, Tesla’s own relationship with Bitcoin has been dynamic. The company initially purchased approximately 42,902 BTC but announced in July 2022 that it had sold 75% of its holdings, reducing its total to around 11,509 BTC. Despite this reduction, Tesla’s Bitcoin holdings still surpass those of El Salvador.
However, Musk’s last post on Bitcoin where he directly used “Bitcoin” or “BTC” was quite long ago. On November 14, 2022, Musk wrote “BTC will make it, but might be a long winter”. The post came at a time when BTC fell to $16,000 following the FTX collapse.
At press time, BTC traded at $102,405.
Featured image from YouTube, chart from TradingView.com
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