El Salvador’s President Nayib Bukele announced that the country’s unrealized profits from Bitcoin investments have exceeded $333 million.

https://t.co/QVvFbQ7woa pic.twitter.com/WiOAYg6Ztx
— Nayib Bukele (@nayibbukele) December 5, 2024

This milestone was reached as Bitcoin surged past the $100,000 mark. In response to the cryptocurrency’s rally, users on X (formerly Twitter) urged Bukele to share details about the government’s crypto investment portfolio.

Bukele revealed that the total amount invested in Bitcoin stands at $269.7 million, with an unrealized return of 123.7%. He noted that the current value of El Salvador’s crypto holdings has reached $603 million.

El Salvador’s Bitcoin Portfolio

According to independent platforms, El Salvador owns 6181 BTC, with an average purchase price of $44,739 per Bitcoin. The country made its first Bitcoin purchase in September 2021, acquiring 200 BTC.

Since 2022, El Salvador has adopted a Dollar-Cost Averaging (DCA) strategy, buying one Bitcoin daily regardless of market price.

Risks and the IMF’s Perspective

In October 2024, the International Monetary Fund (IMF) reiterated its concerns about El Salvador’s crypto policy, urging the government to reconsider its reliance on Bitcoin. IMF analysts highlighted the potential risks that the asset’s volatility could pose to the nation’s financial system.

However, in February 2023, the IMF acknowledged that the anticipated risks from legalizing Bitcoin in El Salvador had not materialized. Despite this, the organization continues to recommend reducing the country’s dependence on high-risk assets.

Social Impact

Research shows that only 7.5% of El Salvador’s population uses Bitcoin for everyday transactions, despite its legal tender status since 2021.

El Salvador remains one of the few nations globally actively accumulating Bitcoin as a strategic asset, amid mixed reactions from the international community.