Emily Walker
During a conversation on X, Tesla’s CEO Elon Musk praised El Salvador’s Bitcoin assets as “impressive,” following President Nayib Bukele’s post about the country’s BTC wallet. El Salvador became the first country to recognize Bitcoin as legal tender in September 2021 and has seen notable growth in its Bitcoin investments this year.
Musk Acknowledges Bitcoin Growth
President Bukele shared a screenshot showing the nation’s Bitcoin holdings after their value rose above $100,000. Their current balance is at $603,340,991, which reflects the market value of around 6,000 BTC owned by the country. Since the start of the year, these holdings have surged by 117.74%, resulting in a profit of $326,245,977.98, which is an increase of 123.67% over the original investment.
Importantly, El Salvador has not liquidated any of its Bitcoin, as demonstrated by a realized profit of $0.00. The potential profit—if the assets were sold at today’s market price—stands at $333,597,190.20. The country initially invested $269,743,800.80 in BTC. The portfolio has experienced variability, peaking at $603.34 million and dipping to $24.77 million, showcasing both its volatility and significant growth over time.
Musk’s response to the update was brief: “Impressive.”
This isn’t the first exchange between Musk and Bukele on social media. On October 29, Bukele listed various positive outcomes of his administration, including reductions in crime, food prices, migration, and government spending, along with increases in Bitcoin pricing, economic development, tourism, and other areas. Musk reacted to this progress with: “Super impressive.”
El Salvador’s Bitcoin initiative has attracted worldwide attention and discussion. The government aims to gain financial independence from the IMF and lure in foreign investments, with the large unrealized profits indicating potential success in this approach.
In contrast, Tesla’s engagement with Bitcoin has varied over time. The company previously acquired about 42,902 BTC but declared in July 2022 that it had divested 75% of its holdings, now retaining around 11,509 BTC. Nonetheless, Tesla’s Bitcoin assets still exceed those of El Salvador.
Interestingly, Musk’s last mention of “Bitcoin” or “BTC” was on November 14, 2022, when he stated, “BTC will make it, but might be a long winter,” amid a drop to $16,000 in value following the FTX incident.
As of the latest update, Bitcoin is valued at $102,405.