El Salvador’s Bitcoin Holdings Now Worth Over $760M as Bitcoin Soars Past $122K
In brief:
- Bitcoin’s price surge to over $122,000 has pushed El Salvador’s sovereign cryptocurrency reserves to approximately $762 million, nearly tripling the nation’s initial estimated cost basis of $42,000 per coin.
- The Central American country holds more than 6,237 BTC, ranking it among the world’s most valuable sovereign crypto reserves.
- Despite pressure from the IMF and the U.S., President Nayib Bukele continues accumulating Bitcoin, defending the country’s mining-centric economic strategy.
With Bitcoin trading above $122,121, El Salvador’s total holdings have surged past $762 million according to Arkham Intelligence data. This represents nearly triple the government’s reported $42,000 per-coin cost basis, yielding substantial paper gains.
President Bukele made Bitcoin legal tender in 2021 following years of market volatility. Arkham Intelligence data shows the administration deliberately accumulated the asset during prior bear markets when prices were significantly lower.
“Sovereigns and central banks must consider Bitcoin as part of their long-term strategic reserves,” Pranav Agarwal, an independent India-based director, told Decrypt. “El Salvador’s mark-to-market gains demonstrate how this approach accrues value over several years.” He noted that if governmental support is secured, such nations face relatively limited “internal regulatory risks.”
However, the policy remains internationally contentious. President Bukele recently mocked U.S. lawmakers who introduced the El Salvador Accountability Act, while the IMF has previously pressured the Central American nation to scale back aspects of its crypto-friendly legislation.
Amid Bitcoin’s new all-time high, financial experts are citing the national treasury’s gains as evidence of Bitcoin allocations delivering significant returns:
“The breakout above the $119,500-120,000 resistance range reflects strong bullish momentum,” said Delta Exchange CEO Pankaj Balani. “A sustained move above $122,000 could open the path toward $124,000-125,000 targets,” he added.
