El Salvador, the first nation to adopt Bitcoin as legal tender, has reached a new milestone in its national cryptocurrency strategy. According to official data from the Salvadoran Bitcoin Office, the country's holdings have now surpassed 7,600 BTC, specifically reaching 7,605 to 7,606 Bitcoin. This strategic reserve is valued at approximately $506 million to $511 million based on recent market prices.
The accumulation is part of a deliberate, long-term sovereign wealth strategy initiated by President Nayib Bukele's administration following the passage of the Bitcoin Law in September 2021. The government employs a dollar-cost averaging strategy, making periodic, market-timed acquisitions to build the reserve. In the week leading up to the report, the treasury added 8 BTC, exemplifying its consistent, slow-and-steady purchasing approach designed to mitigate volatility risk and avoid moving the market with large orders.
This Bitcoin holding now constitutes a significant portion of the nation's financial assets, representing over 14% of El Salvador's total gross international reserves, which were approximately $3.5 billion in early 2025. The government maintains it has not sold any Bitcoin, adhering to a strict "hodling" strategy despite periods of significant paper losses during market downturns.
The policy is central to a broader economic vision that includes plans for a Bitcoin-backed "Volcano Bond" and the development of "Bitcoin City," a proposed tax-free municipality powered by geothermal energy. The initiative aims to reduce reliance on traditional fiat, mitigate inflation risks, and attract foreign investment and technological talent.
While the International Monetary Fund (IMF) and some credit rating agencies have repeatedly expressed concerns over the risks of holding a volatile asset as a national reserve, El Salvador's experiment is being closely watched globally. It provides real-world data on cryptocurrency integration at a sovereign level and could influence other nations considering similar policies. The nation-state acting as a permanent buyer also has implications for the broader Bitcoin market, potentially reducing circulating supply and creating upward price pressure.
