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Strategy (previously MicroStrategy) and El Salvador have reported substantial paper profits from their Bitcoin investments following the cryptocurrency’s rise to a new all-time high exceeding $124,000.
Strategy’s Bitcoin holdings reach ATH
On August 13, Strategy Chairman Michael Saylor revealed that the company’s Bitcoin assets had achieved a record valuation of $77.2 billion.
This figure nearly doubles the $41.8 billion valuation noted in 2024 and signifies an extraordinary 40-fold increase from the $2.1 billion the company invested when it started acquiring BTC in 2020.
Strategy’s Bitcoin Holdings (Source: Strategy)
According to data from Saylor Tracker, the firm currently possesses 628,946 BTC, valued at approximately $76.52 billion based on current market rates. These holdings equate to paper profits exceeding $30 billion, as Strategy had invested around $46 billion in the cryptocurrency at an average price of $73,301 per coin.
It is noteworthy that Saylor’s accumulation strategy initially encountered skepticism from critics who raised concerns about the risks associated with significant exposure to a volatile asset.
Nonetheless, BTC’s surge has validated this strategy, positioning Strategy among the largest corporations globally.
Building on this success, the firm is broadening its Bitcoin-focused offerings. It has introduced a range of BTC-backed financial products to attract further investment and enhance its Bitcoin reserves.
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El Salvador flaunts gains
El Salvador is concurrently celebrating its own Bitcoin gains amid the current bullish market conditions.
On August 13, President Nayib Bukele disclosed information indicating that the nation’s Bitcoin holdings have increased to $768.85 million from an initial investment of $300.5 million. This translates to a profit of approximately $468.3 million, or 155.82%.
Over the years, the Central American nation has advocated for Bitcoin adoption by implementing daily purchases through a disciplined dollar-cost-averaging strategy.
As per blockchain analytics firm Lookonchain, an investor mimicking El Salvador’s daily buying approach would have achieved a 115% return.
Additionally, El Salvador is advancing plans for a dedicated Bitcoin bank to further incorporate the leading cryptocurrency into its wider financial framework.
However, the country has encountered considerable opposition from entities such as the International Monetary Fund (IMF) regarding its Bitcoin adoption.
The IMF has consistently warned against additional BTC acquisitions and recently indicated that some reported purchases might represent internal wallet transfers rather than new Bitcoin acquisitions.
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