El Salvador's Bitcoin Holdings Surge 81% to $760 Million

El Salvador's Bitcoin holdings have surged past $760 million as the price of Bitcoin broke above $122,000. The Central American nation now holds over 6,237 BTC, making it one of the most valuable sovereign crypto reserves globally. This significant increase in value is a result of Bitcoin's price surge, which has nearly tripled El Salvador's estimated cost basis of $42,000 per coin.

President Nayib Bukele's administration made Bitcoin legal tender in 2021 and began accumulating the asset during market lows. Despite facing harsh criticism, diplomatic tension, and a major selloff, El Salvador's strategy has proven successful as the market turned in its favor. The country's paper profits from its Bitcoin holdings now dwarf many traditional government investments.

El Salvador's Bitcoin strategy continues to face international scrutiny, with the IMF previously pressuring the country to roll back parts of its crypto law. However, President Bukele remains unfettered in his approach, continuing to add Bitcoin to the national balance sheet. He recently took to social media to mock U.S. senators who introduced the El Salvador Accountability Act of 2025, a bill aiming to investigate the country’s Bitcoin usage and consider sanctions.

The success of El Salvador's Bitcoin strategy has been noted by industry experts. Pranav Agarwal, an independent director at Jetking Infotrain India, stated that sovereigns and central banks must consider Bitcoin as part of their long-term strategic reserves. He also noted that the mark-to-market gains by El Salvador are a great indicator of how this approach accrues value over a rolling four-to-five-year period.

Despite the potential risks, Agarwal believes that as an independent nation, El Salvador does not face material internal regulatory risks as long as the government has the support of the elected representatives. This support has allowed President Bukele to continue his crypto-forward stance, defying international pressure and criticism.