El Salvador’s Bitcoin Assets Rise to $644 Million, Producing $357 Million in Paper Profits

Despite the International Monetary Fund’s stipulations on public-sector cryptocurrency involvement linked to a $1.4 billion loan deal, El Salvador’s Bitcoin Office continues to acquire one Bitcoin daily.

This approach seems to be yielding positive results, as the nation now possesses a substantial amount of unrealized profits exceeding $357 million, spurred on by a recent upward trend in Bitcoin prices that brings it close to its previous all-time high.

El Salvador’s Bitcoin Holdings

President Nayib Bukele showcased a screenshot on social media indicating that El Salvador’s Bitcoin portfolio has surpassed $644 million in value, based on an initial investment of $287.1 million. This translates to a profit margin exceeding 124%.

Despite persistent oversight from international financial entities, El Salvador remains steadfast in its Bitcoin acquisition approach. Bukele, who advocated for Bitcoin’s legalization in 2021 to enhance financial accessibility, has continually refuted calls to retract the initiative.

Data collected reveals that El Salvador holds 6,181 BTC, ranking it as the sixth-largest sovereign holder of Bitcoin worldwide, following the United States, China, the United Kingdom, Ukraine, and Bhutan.

Continued Bitcoin Investments Amid IMF Restrictions

In December, El Salvador consented to modify its Bitcoin-related policies as part of a financial agreement with the International Monetary Fund. This arrangement, which includes a $1.4 billion loan and is projected to exceed $3.5 billion, came with stipulations designed to limit the country’s crypto endeavours.

The IMF had previously issued warnings about potential hazards associated with El Salvador’s Bitcoin assets. In adherence to the agreement, lawmakers approved reforms in January, making Bitcoin acceptance voluntary for businesses instead of obligatory.

Nevertheless, Bukele emphasized that cryptocurrency remains integral to his vision. In a statement on social media, the President asserted that the purchasing strategy will persist despite international agreements, affirming El Salvador’s resilience even amidst widespread criticism and a retreat from the broader cryptocurrency community.