El Salvador's Bitcoin Holdings Surge 124% — A National Crypto Strategy Pays Off

El Salvador's Bitcoin Holdings Surge 124% — A National Crypto Strategy Pays Off

El Salvador’s President Nayib Bukele has officially revealed the country’s current Bitcoin holdings, reigniting interest in the nation’s controversial yet bold crypto policy. According to a government report cited by The Defiant on May 21, El Salvador has invested approximately $287 million in Bitcoin, and its holdings are now worth about $644 million, reflecting a 124% increase in value.

Resilience Amid Volatility

Since adopting Bitcoin as legal tender in 2021 — the first country in the world to do so — El Salvador has maintained a consistent strategy of acquiring Bitcoin regardless of market conditions. Notably, even during the harsh downturn of 2022, when the value of its holdings dropped to as low as $25 million, the government continued to purchase one BTC per day.

This accumulation strategy drew harsh criticism from global institutions, particularly the International Monetary Fund (IMF), which cited concerns over financial risk and fiscal discipline. Nevertheless, the administration held firm, framing Bitcoin as a long-term strategic asset and a symbol of economic sovereignty.

From Experiment to Proof of Concept

The latest valuation effectively doubles the country’s investment, converting what many saw as a speculative gamble into a substantial sovereign asset gain. While the volatility of Bitcoin remains a risk, El Salvador’s steady dollar-cost averaging (DCA) strategy appears to be paying off.

By purchasing BTC consistently, regardless of market swings, the country has significantly lowered its average acquisition cost — a disciplined investment move more common in institutional portfolios than in national treasuries.