The small Central American state of El Salvador and its president Nayib Bukele have reaped significant rewards from an unorthodox economic decision—adopting Bitcoin as legal tender in 2021.

As the first country in the world to officially approve bitcoin payments and actively accumulate them as part of its national reserves, El Salvador initially faced skepticism from mainstream economists and the press. But Bitcoin's recent bull run has silenced many critics.

This week, President Bukele said on social media that “if we sold, we would make a profit of more than 40%.” Based on purchasing data that Bukele himself periodically posts, Salvador owns 2,381 BTC, purchased at an average price of $44,292.

With the price of Bitcoin crossing $62,000 this week, El Salvador's Bitcoin stock is now generating a healthy positive yield of $147 million in hard value. This even takes into account transaction fees.

Based on a first-in, first-out cost model, if the government were to sell its entire stake at the current price, it would make a profit of $41.6 million—an increase of more than 40%, as Bukele proudly notes.

Despite the temptation to materialize profits, Bukele insists: “Of course we won’t sell.” Addressing Bitcoin hodlers, he philosophically tweeted that "1 BTC = 1 BTC", regardless of the US dollar conversion rate.

Besides justifiably justifying his crypto vision, Bukele also pointed to the remarkable recovery of his country's bonds over the past year. After hitting a low of 50 cents on the dollar last summer, El Salvador's debt due in 2052 has risen again to above 80 cents.

However, in such an experimental economy there are always risks. The IMF continues to warn that the adoption of bitcoin threatens financial stability in the country, which is heavily dollarized.