El Salvador has announced unrealized gains of $350 million from its Bitcoin holdings, capitalizing on the cryptocurrency’s recent price surge. The announcement, made on Nov. 21, reflects the country’s strategic bet on Bitcoin as a cornerstone of its economic policy. El Salvador became the first nation to adopt Bitcoin as legal tender in September 2021, drawing global attention and mixed reactions.
The gains are attributed to Bitcoin’s price nearing $37,000, significantly higher than the average purchase price of El Salvador’s Bitcoin portfolio. The government’s total holdings now stand at an estimated $700 million, a figure boosted by Bitcoin’s rally in recent months. While the profits remain unrealized, they mark a vindication of President Nayib Bukele’s controversial Bitcoin strategy.
President Bukele has consistently defended the country’s Bitcoin adoption, framing it as a means to promote financial inclusion and attract foreign investment. The government has also launched initiatives like Volcano Bonds and Bitcoin City, aiming to position El Salvador as a hub for blockchain and cryptocurrency innovation. The reported gains could strengthen the administration’s narrative amid criticism from skeptics about Bitcoin’s volatility.
While the announcement is a positive indicator for the country’s Bitcoin experiment, analysts urge caution, noting that unrealized gains can quickly evaporate in a volatile market. Nonetheless, the news has reignited interest in El Salvador’s bold crypto policies, with proponents viewing it as a model for integrating digital assets into national economies.
