Bitcoin News Today: Bitcoin surges past $124,000 driving gains for MicroStrategy and El Salvador

Strategy (formerly MicroStrategy) and El Salvador have both experienced significant gains as Bitcoin surged to a new record high above $124,000. Strategy’s Bitcoin portfolio, under the leadership of Chairman Michael Saylor, reached a value of $77.2 billion on August 13, more than doubling its 2024 valuation of $41.8 billion and reflecting a 40-fold increase from its initial $2.1 billion investment in 2020 [1]. The firm currently holds 628,946 BTC, generating over $30 billion in paper profits [1]. Initially criticized for its heavy exposure to a volatile asset, Strategy’s accumulation strategy has now positioned it among the world’s largest corporations, and the firm is expanding its Bitcoin-based financial products to attract further investment [1].

Simultaneously, El Salvador, which began daily Bitcoin purchases in November 2022, has seen its national reserves grow to $768.85 million, a 155.82% return on its $300.5 million initial investment [1]. Blockchain analytics suggest that an investor replicating the country’s strategy would achieve a 115% return [1]. The Central American nation is advancing plans for a dedicated Bitcoin bank to integrate the cryptocurrency into its broader financial infrastructure [1]. However, the country’s approach has faced criticism, particularly from the International Monetary Fund (IMF), which has urged caution and questioned the authenticity of some reported purchases [1].

Bitcoin’s price surge reflects a broader trend of increasing institutional and national adoption of the cryptocurrency. As a store of value, Bitcoin is gaining recognition alongside traditional assets, with Strategy’s performance illustrating its potential as a core component of institutional portfolios [3]. El Salvador’s experience, meanwhile, highlights how smaller economies can leverage digital assets for long-term gains, offering a model for other nations considering similar strategies [4]. The success of both entities underscores Bitcoin’s evolving role in global finance and the growing acceptance of digital assets as a legitimate and strategic investment class.