In 1867, the United States made one of the most surprising real estate deals in history—buying Alaska from Russia for just $7.2 million. That breaks down to about 2 cents per acre for over 586,000 square miles of land!
At the time, many Americans thought it was a terrible idea. Critics mocked the purchase, calling it “Seward’s Folly” or “Seward’s Icebox”—a jab at Secretary of State William H. Seward, who negotiated the deal. People couldn’t understand why the U.S. would spend millions on what they believed was a frozen wasteland with little value.
But history proved them wrong.
Though it took decades for the purchase to be fully appreciated, Alaska turned out to be incredibly rich in natural resources—including gold, oil, natural gas, and timber. The Klondike Gold Rush in the late 1890s and, later, massive oil discoveries in the 20th century revealed the true value of the land.
Strategically, Alaska also played a key military role during World War II and the Cold War due to its proximity to Russia. Today, it remains vital for defense and energy.
In 1959, Alaska became the 49th state of the United States.
What seemed like a mistake at first became one of the greatest bargains in U.S. history. From a so-called frozen wasteland to a land of opportunity and abundance, the Alaska Purchase is a powerful reminder that bold decisions can pay off—big time.