El Salvador’s controversial Bitcoin gamble is now reaping massive paper profits. With Bitcoin flirting near its all-time high of $69,000, the Central American nation’s crypto holdings are sitting on an unrealized gain of over $357 million.
President Bukele’s Strategy Proves Profitable
In 2021, El Salvador became the first country in the world to make Bitcoin legal tender under the leadership of President Nayib Bukele. Despite international backlash, the government continued to accumulate BTC, buying the dips during market crashes and holding firm.
As of mid-May 2025, the country’s Bitcoin holdings exceed 2,800 BTC, purchased at an average cost of around $42,000. With current prices nearing $69,000, the portfolio’s value is now over $385 million.
“We’re in the green by over $357 million, and we’re not selling,” Bukele proudly shared on social media.
Bitcoin Tests All-Time High Levels
The surge in value comes amid strong institutional demand, ETF inflows, and increasing mainstream acceptance of Bitcoin as a hedge against inflation. Market optimism is fueling BTC’s rally, bringing attention back to El Salvador’s Bitcoin experiment.
From Global Criticism to Global Curiosity
Initially, international organizations like the IMF and World Bank condemned El Salvador’s Bitcoin policy, calling it risky and unsustainable. But with current gains, many are now re-evaluating their stance.
What was once labeled as “economic recklessness” is now seen as a bold move that may pay off.
Developing nations are closely watching El Salvador, considering whether they too should explore integrating digital assets into their national strategies.
What Lies Ahead for the Bitcoin Nation?
Speculation is growing over what El Salvador might do with these potential gains. Some suggest they could be used to invest in public infrastructure, pay down debt, or expand Bitcoin adoption.
The government remains focused on long-term plans such as:
- Bitcoin-backed Volcano Bonds
- Bitcoin City — a tax-free city powered by geothermal energy
- Continued accumulation through the “1 BTC per day” initiative
Conclusion
El Salvador’s Bitcoin journey is no longer just a risky experiment — it’s a profitable case study. With $357 million in unrealized profit, the country’s bold crypto bet may shape the future of how nations think about digital currency reserves.