Bitcoin
El Salvador Secures $1.6 Billion to Kickstart Bitcoin City Plan
El Salvador has secured a landmark $1.6 billion investment from Turkey’s Yilport Holding to propel its Bitcoin City project.
President Nayib Bukele announced this strategic partnership, which will modernize two critical seaports in the country. Additionally, it will provide the necessary infrastructure for the ambitious project.
$1.6 Billion Investment to Modernize Ports, Kickstart Bitcoin City
In his X (Twitter) post, President Bukele revealed that Yilport Holding’s investment also marks the largest private investment in El Salvador’s history. According to Stacy Herbert, Director of El Salvador’s Bitcoin Office, the agreement is a direct outcome of President Bukele’s 2022 visit to Turkey.
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Yilport Holding is a subsidiary of the Turkish conglomerate Yildirim Group. The company was established in 2011 to consolidate the Yildirim Group’s port and container terminal operations under one roof, and it expanded its reach into Latin America in 2016.
This agreement also marks the third phase of the government’s economic plan. The modernization efforts will commence with upgrades to the port of Acajutla, focusing on improving infrastructure and reducing response times.
This move will be followed by significant renovations at the Port of Union, which has been underutilized for over two decades. The enhancements are crucial as they form the backbone of the forthcoming Bitcoin City, a project central to Bukele’s economic strategy.
Max Keiser, Senior Bitcoin advisor to President Bukele, celebrated the announcement as a pivotal milestone for Bitcoin City. He also emphasized that this investment solidifies the city’s foundations and enhances El Salvador’s role in the global crypto stage.
“Bukele’s Turkey trip paid off bigly! Qatar on deck,” Keiser hinted.
President Nayib Bukele previously announced the idea of Bitcoin City in 2021. Construction of this project will rely on funds from government-issued Bitcoin bonds.
Yet, the project faced multiple delays. Many attribute this postponement to the unfavorable market conditions following the peak of the bull market in November 2021.
However, in February 2024, amidst his presidential campaign, President Bukele revitalized his vision for Bitcoin City. Despite the lingering uncertainties about the project, El Salvador remains a staunch supporter of Bitcoin under Bukele’s administration.
Read more: Who Owns the Most Bitcoin in 2024?
Since the president implemented the Dollar Cost Averaging (DCA) strategy to buy one Bitcoin daily, the country has consistently purchased BTC regardless of market conditions. At the time of writing, El Salvador’s mempool shows that the government holds 5,840 BTC. With the current market price of Bitcoin, this amounts to approximately $343.31 million.
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