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El Salvador and pro-Bitcoin businesses reaping rewards after years of skepticism
El Salvador and companies that chose to buy Bitcoin with reserves are having the last laugh as BTC approaches all-time highs before halving.
2 min read
Updated: Feb. 29, 2024 at 11:58 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
El Salvador and several forward-thinking corporations, including Nexon and Tahini’s, are witnessing substantial returns on their Bitcoin investments, challenging the wave of skepticism they faced from the media and financial analysts.
Despite enduring a barrage of negative press when they made their investments over the last few years, the Bitcoin stacks they built up are now positioned to reap significant profits as BTC approaches its all-time high price levels.
Betting on Bitcoin
El Salvador, under the leadership of its innovative government, took a bold step by integrating Bitcoin into its national economy, facing a storm of criticism and doubt from international observers.
President Nayib Bukele recently said that the country’s investment in Bitcoin, primarily acquired when the market was bearish, could now yield a profit exceeding 40%.
Additionally, he revealed that its “Bitcoin for citizenship” program has become the primary source of BTC for the country — showcasing a unique model of leveraging digital assets to fuel national development.
Despite the potential for substantial gains, Bukele said the country has no plans to sell its holdings and views it as a permanent reserve. He said:
“1 BTC = 1 BTC.”
Corporations in the black
Similarly, South Korean gaming giant Nexon made headlines in April 2021 when it purchased 1,717 BTC for $100 million. The purchase marked a significant endorsement of Bitcoin from the corporate sector at the time.
The company’s decision to invest in Bitcoin was met with skepticism; however, recent market trends have vindicated its strategy, with its holdings now “back in the black,” signaling a positive return on investment.
Bitcoin maxi Samson Mow said the success story is a pivotal moment for corporate Bitcoin adoption, suggesting that more companies might consider adding crypto to their treasury strategies.
Meanwhile, UK-based Tahini’s, a restaurant chain known for its Middle Eastern cuisine, put the entirety of the business’s cash reserves in Bitcoin in 2020. It said at the time that cash no longer held the same value for it after governments’ unbridled printing during the COVID-19 pandemic.
The company documented most of its journey during the following two years, which culminated in the $69,000 ATH for Bitcoin before one of the coldest crypto winters set in.
Tahini’s has continued to buy Bitcoin with its cash reserves since then, throughout the bear and bull market cycles, staying true to its aggressive strategy. It recently announced that it scooped up a substantial amount of Bitcoin at CAD 85,500 over the past few weeks.
Mainstream media’s silence
The silence from previously critical “analysts” and “journalists” in the face of these successes raises questions about the narratives surrounding crypto investments and the biases that may influence financial reporting.
Bukele has publicly denounced the mainstream media’s lack of positive coverage now that its Bitcoin bet has paid off. He said:
“They wrote literally thousands of articles about our supposed losses…. but it’s very telling that the authors of those hit pieces, the ‘analysts’, the ‘experts,’ the ‘journalists,’ are totally silent now.”
The experiences of El Salvador, Nexon, and Tahini’s with Bitcoin investment illuminate a broader narrative about the risks and rewards associated with choosing Bitcoin as your underlying reserve asset.
Despite facing significant criticism and doubt, their persistence and strategic investments in Bitcoin have positioned them to potentially realize significant financial gains.
Mentioned in this article
Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Samson Mow is known for his double role as the Chief Strategy Officer (CSO) at Blockstream and the Chief Executive Officer (CEO) at Pixelmatic.
Nayib Armando Bukele Ortez is a Salvadoran politician and businessman who is the 46th and current President of El Salvador.
