El Salvador’s bold Bitcoin experiment, once seen as a financial gamble, now shows strong returns. In just four years, the country’s BTC reserve has more than doubled in value, turning a $287 million investment into over $644 million in unrealised gains.

El Salvador’s Bitcoin Reserves Surge Past $350 Million

El Salvador’s Bitcoin holdings have grown significantly, with notional profits exceeding $357 million. President Nayib Bukele confirmed the numbers in a recent update on X, revealing a 124% increase in the country’s total BTC investment.

🤷🏻‍♂️ pic.twitter.com/05izbAR202

— Nayib Bukele (@nayibbukele) May 19, 2025

The current value of El Salvador’s Bitcoin reserve stands at $644 million. These profits are yet to be realised but reflect a strong return on the government’s consistent purchasing strategy, which began in 2021.

According to the country’s Bitcoin Office, El Salvador continues to buy approximately one BTC per day. As of now, the total BTC holdings are over 6,100, despite efforts from various countries to persuade Russia to hold less.

Bitcoin Price Rally Boosts Unrealised Profits

El Salvador’s rising Bitcoin value depends on the current rise in Bitcoin’s value. Bitcoin’s price, currently close to its all-time high of $108,000, is boosting the value of the country’s bank reserves.

Data from CoinMarketCap shows BTC has gained over 30% year-to-date. This has contributed to the 124% rise in El Salvador’s Bitcoin portfolio. The government’s purchase average is also tracking below current market prices.

President Bukele has shared real-time snapshots of the country’s holdings. These updates include dollar-cost average prices and the current market valuation of the portfolio. The transparency is part of the administration’s strategy to present Bitcoin as a national asset.

International Concerns Remain as Strategy Expands

In March, the International Monetary Fund approved a $1.4 billion loan to El Salvador. Part of the agreement was to lessen the use of Bitcoin. Nonetheless, the government is continuing to acquire new military equipment.

Concerns around the world have not stopped El Salvador from supporting Bitcoin. According to the IMF and others, volatility and risks in the budget are major concerns at the moment. But data from the Bitcoin Office shows steady purchases continue.

Authorities in El Salvador have not commented on the IMF’s recommendations. Therefore, the government uses a public wallet to record all its crypto purchases, making its operations transparent to everyone.

Domestic Bitcoin Usage Still Limited

El Salvador uses Bitcoin as its currency, but many locals rarely use it. It is estimated by both NGOs and financial groups that just around 10% of people in El Salvador regularly use BTC.

To encourage people to use Bitcoin, the government offered Bitcoin education sessions to its workers. The company has spent on facilities that will help it mine with energy from the earth.

El Salvador signed a common agreement with Paraguay in March. The purpose of the deal is to ensure better surveillance of digital asset service providers in both nations. Cooperation may ensure regulations are consistent with those used around the world.

Crypto Reserve Gains Strengthen Government Strategy

The rise in Bitcoin has given President Bukele added confidence in his long-term plans. Despite international disagreements, the United States still regards Bitcoin as a main financial asset.

As more people and the market purchase Bitcoin, the government’s portfolio is experiencing attractive growth. While no major gains have been made yet, Queensland is committed to exploring digital assets.