El Salvador, the first country to adopt Bitcoin as legal tender, has once again made headlines with its crypto experiment. President Nayib Bukele proudly shared on social media that the nation's Bitcoin holdings have generated an impressive $357 million in unrealized profits on an initial investment of $287 million, representing a return of over 24%.
The 'One Bitcoin a Day' Strategy Pays Off
Since 2021, Bukele’s administration has been systematically purchasing one Bitcoin per day. A chart posted by Bukele shows that the current value of El Salvador’s Bitcoin portfolio stands at approximately $644 million, far exceeding the cost basis of $287 million. The president hailed this as a victory against skeptics and emphasized that the country has not sold any coins during market downturns.
These gains remain unrealized, but Bukele views them as a sign that bold financial innovation can bear fruit even for a small, dollarized economy. El Salvador has also leveraged Bitcoin mining and plans to issue “Volcano Bonds” to fund its ambitious “Bitcoin City” project.
Continued Purchases Despite IMF Agreement
The profit announcement comes shortly after El Salvador finalized a credit facility agreement with the International Monetary Fund (IMF). The deal unlocks $1.4 billion in financing but includes a condition that the public sector cease Bitcoin purchases. Nevertheless, Bukele’s government has found ways to continue accumulating BTC, likely through private trusts or state-owned enterprises. Bukele frequently posts screenshots of fresh Bitcoin buys, stating he is sticking to the “one a day” schedule.
The IMF has not directly condemned the purchases but has reiterated that the terms must be respected. Analysts note a tension between El Salvador’s crypto-friendly policies and IMF conservatism, yet Bukele’s growing returns have swayed public opinion in his favor.
Global Demonstration Effect
El Salvador’s Bitcoin experiment was once widely ridiculed, especially after early losses during the 2022 bear market. However, the subsequent bull run in 2024–2025 turned those losses into massive gains. This success story could inspire other developing nations—particularly those grappling with dollar dependency and inflation—to explore similar strategies.
“They laughed at us, called us crazy. Now the numbers speak for themselves,” Bukele tweeted. El Salvador is proving that Bitcoin can serve not only as a store of value but also as a profitable national asset.