El Salvador’s Bitcoin holdings yield over $357M in unrealized gains

El Salvador’s Bitcoin investment has yielded an unrealized profit exceeding $357 million, President Nayib Bukele revealed in a social media update. This gain comes amid Bitcoin’s recent surge, which is nearing its all-time high of $108,786.

A screenshot Bukele posted on X estimated that the nation’s holdings in Bitcoin were worth more than $644.4 million, compared with the initial amount spent of $287.1 million. This translates to an unrealized profit margin of 124.4%, with $69.8 million in unrealized gains generated so far this year.

🤷🏻‍♂️ pic.twitter.com/05izbAR202

— Nayib Bukele (@nayibbukele) May 19, 2025

El Salvador doubles down on Bitcoin strategy despite IMF pressure

El Salvador’s wallet currently holds approximately 6,181 BTC, equivalent to about $639 million at the time of reporting, based on figures from the nation’s Bitcoin office.

Four years ago, El Salvador became the first country to formally adopt Bitcoin as a legal tender, as Bukele proposed, to promote financial inclusion. Since then, the country has been steadily accumulating bitcoin. 

Though it had agreed to rein in Bitcoin activities as part of a financing deal with the IMF (even allowing private businesses to accept Bitcoin voluntarily), Bukele remained steadfast in promoting the accumulation of Bitcoin. The agreements were quickly turned into law by the legislature in January.

On X, Bukele earlier said that although El Salvador’s Bitcoin move has been heavily criticized from all corners of the world, and despite early Bitcoin advocates leaving the project, the country’s Bitcoin strategy lives on.

Bitcoin rallies toward record highs

The surge in El Salvador’s Bitcoin portfolio parallels Bitcoin’s broader market rally as it hovers near its all-time highs. This has been boosted by renewed enthusiasm for exchange-traded funds and changing economic indicators steering investor capital back toward riskier assets.

The leading crypto rose above $105,700 on Sunday evening, extending gains made over the past two weeks. Earlier today, it reached a peak of $106,500. At present, bitcoin trades at about $102,387, according to CoinGecko. 

While previous rallies were often powered by retail speculation, this one unfolds amid heavy flows into spot Bitcoin ETFs, stable interest rate expectations, and renewed debate around inflation as tariffs on key imports come back into focus.

Singapore-based QCP Capital wrote in a note last week that, looking ahead, they believe there is further room for digital assets to rally, especially as Coinbase’s inclusion into the S&P 500 becomes a reality in a short while.

Bitcoin ETFs attract billions as inflation worries fuel rally

US spot Bitcoin ETFs saw over $2.8 billion in net inflows during the first half of May, according to data from SoSoValue.

The biggest single-day influx occurred on May 2, with $674.9 million flowing in. As of May 16, cumulative inflows had reached $41.77 billion, pushing total net assets above $122 billion.

Broader macroeconomic conditions have also supported Bitcoin’s rally. Lingering inflation concerns, particularly as new trade policies affect supply chains, have added to Bitcoin’s attractiveness as a potential hedge—especially if inflationary pressures continue.

A temporary 90-day tariff reduction deal between the US and China has offered some relief, but elevated duties remain on sectors including electric vehicles, semiconductors, and consumer electronics. 

Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More