El Salvador's Bitcoin Holdings Surge 21.3% to $644 Million in One Month

El Salvador’s Bitcoin holdings have surged to $644 million, marking a $137 million increase in just one month. This significant gain comes as Bitcoin recently approached its all-time high, briefly touching $106,500 before settling around $103,172. President Nayib Bukele shared the news on Sunday, highlighting the country’s Bitcoin portfolio with an eye-opening 124.4% profit margin on their initial investment of $287.1 million, generating unrealized gains of $357 million.

El Salvador now holds approximately 6,181 BTC, making it the sixth-largest sovereign Bitcoin holder globally. This achievement is particularly notable given the country’s agreement with the International Monetary Fund (IMF). In December, El Salvador secured a $1.4 billion IMF loan that required scaling back public-sector cryptocurrency involvement. Despite this, El Salvador has continued its Bitcoin acquisition strategy through creative compliance. The country’s Bitcoin Office, technically outside the fiscal sector’s definition, has maintained its “one Bitcoin a day” acquisition policy, adding another 30 BTC to its holdings last month alone.

President Bukele has made it clear that his Bitcoin policy is permanent. In March, he stated on X (formerly Twitter) that the country’s Bitcoin strategy would not be halted. The legislature quickly passed bills making Bitcoin acceptance voluntary for the private sector to satisfy IMF requirements. However, this has not stopped the government from continuing its Bitcoin accumulation strategy. El Salvador made history in June 2021 by becoming the first nation to adopt Bitcoin as legal tender, aiming to promote financial inclusion in a country where many citizens lack access to traditional banking services.

Bitcoin’s recent rally has been attributed to several factors, including macro relief, strong ETF inflows, and growing expectations that the Fed will maintain policy flexibility amid softening economic data. The country’s success with Bitcoin has caught the attention of other nations, with Changpeng Zhao, former CEO of Binance, revealing that he has been advising governments worldwide on building national crypto reserves. Vedang Vatsa, founder of Hashtag Web3, noted that El Salvador’s profits demonstrate the potential for digital assets to boost national wealth, but cautioned that widespread adoption remains limited. He emphasized that such ambitious economic ideas work best when paired with broader public engagement and a roadmap toward long-term stability.