El Salvador's Bitcoin Holdings Surge 80% to $760 Million

El Salvador, the first country to adopt Bitcoin as legal tender, has seen a significant return on its investment in the cryptocurrency. Since November 2022, the government has been purchasing Bitcoin regularly, resulting in an unrealized profit of over $456 million. This strategy of steady accumulation, often referred to as “dollar-cost averaging,” has helped buffer the volatility of Bitcoin’s price swings and allowed the country to benefit from the recent price surge.

As of now, with Bitcoin trading much higher than it was in 2022, El Salvador’s Bitcoin holdings have surged in value. Although the profits are unrealized—meaning the assets haven’t been sold—the increase showcases the strength of long-term conviction in the cryptocurrency space. This success puts El Salvador in a unique position on the global stage, serving as a real-time case study of national-level crypto adoption. While many nations remain cautious about Bitcoin, El Salvador has taken the plunge and now serves as a real-time case study of national-level crypto adoption.

El Salvador's strategic decision to invest in Bitcoin has yielded significant returns, with the country's holdings surpassing $760 million as the digital asset's value soared past $122,000. This surge has nearly tripled the nation's estimated cost basis of $42,000 per Bitcoin, resulting in substantial paper profits that outstrip many traditional government investments. El Salvador now possesses over 6,237 BTC, making it one of the most valuable sovereign crypto reserves globally.

President Nayib Bukele's administration legalized Bitcoin as legal tender in 2021 and began accumulating the asset during market lows. This move, though initially met with harsh criticism and diplomatic tension, has proven to be a shrewd financial strategy. The country's Bitcoin holdings have not only weathered a major selloff but have also capitalized on the market's subsequent turn in its favor. Despite international scrutiny and pressure from the IMF to roll back parts of its crypto law, Bukele has remained steadfast in his support for Bitcoin. The IMF's pressure led to a rollback that made Bitcoin acceptance optional for businesses, but Bukele continues to add Bitcoin to the national balance sheet. He has also taken to social media to mock U.S. senators who introduced the El Salvador Accountability Act of 2025, a bill aimed at investigating the country’s Bitcoin usage and considering sanctions.

The success of El Salvador's Bitcoin strategy has been noted by financial experts. An independent director at Jetking Infotrain India highlighted that sovereigns and central banks should consider Bitcoin as part of their long-term strategic reserves. He pointed out that the mark-to-market gains by El Salvador are a strong indicator of how this approach can accrue value over a rolling four-to-five-year period. The expert also noted that as an independent nation, El Salvador does not face material internal regulatory risks as long as the government has the support of elected representatives.

The continued rise in Bitcoin's value has also attracted the attention of traders, who are closely monitoring key levels for signs of further momentum. The breakout above the $119,500–$120,000 range, supported by rising volume, reflects continued buying interest. A sustained move above $122,000 could open the path toward $124,000–$125,000, according to analysts.

El Salvador's Bitcoin bet has not only vindicated the country's crypto-forward stance but has also set a precedent for other nations considering similar strategies. The significant returns on investment have demonstrated the potential of Bitcoin as a valuable asset for sovereign reserves, despite the risks and challenges associated with its volatility. As the digital asset continues to gain traction, El Salvador's experience serves as a case study in global economics, showcasing the potential benefits and pitfalls of embracing cryptocurrency as a national strategy.