🇸🇻 El Salvador's Bitcoin Reserve Hits Historic $740M Milestone
San Salvador — El Salvador’s bold Bitcoin experiment has reached a new milestone, with the nation’s official Bitcoin holdings valued at an all-time high of $740,422,131 USD. This marks a major validation point for President Nayib Bukele’s controversial yet visionary adoption of Bitcoin as legal tender in 2021.
The surge in value comes as Bitcoin recently broke past the $70,000 mark, propelling El Salvador’s strategic reserves to unprecedented levels. With over 5,800 BTC in national custody, the country is reaping the benefits of its early and sustained crypto investments.
From Global Criticism to Economic Case Study
Initially met with skepticism by global financial institutions like the IMF and World Bank, El Salvador’s Bitcoin-centric policy has evolved from a high-risk gamble into a unique economic case study. The country’s strategy included:
- Making Bitcoin legal tender alongside the US dollar (September 2021)
- Accumulating BTC through dollar-cost averaging (DCA) and dips
- Launching a national crypto wallet: Chivo
- Developing Bitcoin-backed tourism and tax incentives
Now, three years later, the value of El Salvador’s Bitcoin reserve is approaching three-quarters of a billion dollars — a significant windfall for a nation with a GDP under $30 billion.
Breakdown of Bitcoin Holdings and Acquisition Strategy
According to public blockchain records and official government disclosures, El Salvador holds:
- Total BTC: 5,829
- Average purchase price: ~$42,300
- Acquisition methods: market buys, mining, services-for-BTC (residency, passport fees)
President Bukele has emphasized transparency by launching a publicly verifiable Bitcoin wallet address, allowing anyone to track the country’s BTC movements on-chain. This level of transparency is unmatched among sovereign nations.
Global Impact and Bitcoin Market Response
The news of El Salvador's holdings reaching a record USD value had immediate ripple effects:
- Increased trading volume in LATAM crypto exchanges
- Bitcoin saw a 2.5% intraday spike amid bullish sentiment
- Social media buzz using hashtags like
#BitcoinCountryand#BukeleDidIt
Experts argue that El Salvador’s sustained commitment, regardless of volatility, sends a powerful signal to emerging economies considering crypto diversification strategies.
“El Salvador just went from the underdog to a potential Bitcoin sovereign wealth success story,” said crypto economist Lana Rodriguez of BlockBridge Analytics.
Risks, Criticisms, and Ongoing Challenges
Despite the current success, risks remain inherent in tying national wealth to a volatile asset. Key concerns include:
- Global price volatility of Bitcoin
- Lack of traditional liquidity tools available to sovereign reserves
- Dependence on Bitcoin tourism and remittance flows
Moreover, critics argue that the nation has yet to fully address issues of financial literacy, crypto education, and internet accessibility, especially in rural areas.
What’s Next for El Salvador’s Bitcoin Strategy?
Looking forward, the government is doubling down. Plans are underway to:
- Issue “Volcano Bonds” — BTC-backed sovereign debt instruments
- Continue mining Bitcoin using geothermal energy
- Develop Bitcoin City — a tax-free, crypto-friendly economic zone
President Bukele’s re-election in 2025 has further solidified this direction. With BTC adoption globally rising and ETFs boosting legitimacy, El Salvador’s head start may position it as a global crypto pioneer.
If Bitcoin continues its upward trajectory, the reserve could surpass the $1 billion mark by early 2026 — transforming what was once a controversial policy into a potential economic masterstroke.