El Salvador has made global headlines as the first country to adopt Bitcoin as legal tender. Beyond symbolic legislation, the Central American nation has backed its commitment with substantial financial investment. As of February 26, 2025, El Salvador owns 6,089 bitcoins, positioning itself as one of the most prominent national holders of the world’s leading cryptocurrency.
This strategic accumulation reflects a bold economic vision aimed at financial inclusion, technological sovereignty, and long-term wealth preservation. With no plans to sell and ongoing daily purchases—supplemented by domestic Bitcoin mining—the country is building a resilient digital treasury.
👉 Discover how nations are reshaping finance with Bitcoin—explore tools to track global crypto trends.
How Much Bitcoin Does El Salvador Own?
As of early 2025, El Salvador holds 6,089 BTC, valued at approximately $654 million based on current market prices. This represents roughly 0.029% of Bitcoin’s total fixed supply of 21 million coins.
Unlike corporations or investment funds that may liquidate positions, El Salvador follows a strict "hold forever" policy. President Nayib Bukele has publicly confirmed that the country has never sold a single satoshi of its Bitcoin holdings. Instead, the government continues to acquire more through two primary methods:
- Daily purchases via government-backed initiatives
- Domestic Bitcoin mining operations powered by geothermal energy from volcanoes
This dual strategy not only strengthens national reserves but also supports sustainable infrastructure development.
Average Cost and Purchase History of El Salvador’s Bitcoin Buys
El Salvador began accumulating Bitcoin shortly after it was declared legal tender in September 2021. While exact details of all purchases aren’t fully disclosed, public records reveal key transactions up to mid-2022, totaling 2,381 BTC acquired at an average price of $43,357 per coin.
Here is a breakdown of the known purchase history:
- June 30, 2022: 80 BTC at $19,000 each ($1.52M invested)
- May 9, 2022: 500 BTC at $30,744 each ($15.37M invested)
- January 21, 2022: 410 BTC at $36,585 each ($15M invested)
- December 21, 2021: 21 BTC at $49,220 each ($1.03M invested)
- December 3, 2021: 150 BTC at $48,670 each ($7.3M invested)
- November 26, 2021: 100 BTC at $54,815 each ($5.48M invested)
- October 27, 2021: 420 BTC at $60,622 each ($25.46M invested)
- September 19, 2021: 150 BTC at $42,843 each ($6.43M invested)
- September 7, 2021: 150 BTC at $46,091 each ($6.91M invested)
- September 6, 2021: 400 BTC at $46,811 each ($18.72M invested)
Total Invested: $103.2 million
These early buys were made during periods of high volatility, yet the average entry price remains well below current valuations—demonstrating strong long-term upside potential.
By May 2024, El Salvador announced it had grown its holdings to over 5,748 BTC, indicating consistent accumulation beyond the initial public data. The additional ~377 BTC likely came from continued small-scale purchases and mining rewards.
Why Did El Salvador Adopt and Buy Bitcoin?
The decision to embrace Bitcoin goes far beyond speculation—it's rooted in economic pragmatism and social innovation.
Financial Inclusion for the Unbanked
Only 29% of El Salvadorans have access to traditional banking services, leaving millions reliant on cash or expensive remittance channels. By adopting Bitcoin and launching the government-backed digital wallet Chivo, the nation provides a secure, low-cost way for citizens to send, receive, and store value—using just a smartphone.
Remittances make up about 20% of El Salvador’s GDP, mostly sent from workers abroad. Traditional services charge steep fees (often 5–10%). Bitcoin enables near-instant transfers with minimal costs, directly benefiting families and boosting local economies.
Reducing Dollar Dependence
While the U.S. dollar remains the official currency for pricing and taxation, El Salvador seeks greater monetary independence. Holding Bitcoin diversifies national reserves and reduces reliance on foreign fiat systems.
President Bukele summarized this vision in a widely shared tweet:
Bitcoin is the future!
This isn’t mere rhetoric—it's a roadmap for technological sovereignty.
The Volcano Bond: El Salvador’s Ambitious Bitcoin-Backed Security
In 2022, El Salvador announced plans to issue the world’s first Bitcoin-backed sovereign bond, nicknamed the “Volcano Bond.” The proposed $1 billion instrument would be half invested in U.S. Treasury securities and half used to purchase Bitcoin.
Key features included:
- 10-year maturity with a 6.5% annual coupon
- Backed by geothermal energy from active volcanoes
- Designed to fund infrastructure and grow national BTC reserves
However, the launch has been delayed multiple times due to regulatory scrutiny and market conditions. Despite setbacks, officials reaffirm their intent to release the bond in the near term—potentially marking a watershed moment for crypto-integrated national finance.
How Is Bitcoin Used in Daily Life in El Salvador?
Since legalization in September 2021, Bitcoin adoption has expanded across sectors:
- Over 3,500 businesses accept BTC for goods and services
- Citizens receive incentives for using Chivo Wallet (e.g., $30 sign-up bonus)
- Public infrastructure projects funded via Bitcoin profits
- Volcanic energy powers eco-friendly mining rigs operated by state-owned LaGeo
Though adoption faces cultural and technical hurdles—especially among older populations—the trend is clearly upward. Mobile wallet usage continues to grow, supported by government education campaigns and internet expansion.
Frequently Asked Questions (FAQ)
Q: Has El Salvador sold any of its Bitcoin?
No. President Bukele has repeatedly stated that the country has never sold any Bitcoin and intends to hold its entire reserve indefinitely.
Q: How does El Salvador afford to buy Bitcoin?
Initial funding came from public budgets and redirected remittance fees. Future acquisitions are supported by tourism revenue, bond proposals (like the Volcano Bond), and income from state-run mining operations.
Q: Where can I check the live price of Bitcoin in El Salvador?
Bitcoin prices are global and consistent across exchanges. However, localized conversion rates (in USD or colón) can be checked via platforms like Bitbo.io or major crypto exchanges.
Q: Is El Salvador’s Bitcoin strategy successful?
While controversial internationally, domestic results show promise: increased financial access, reduced remittance costs, and growing tech investment. Long-term success will depend on sustained adoption and macroeconomic stability.
Q: Does owning Bitcoin protect against inflation?
Yes—Bitcoin’s capped supply of 21 million makes it inherently deflationary. For countries vulnerable to currency devaluation, holding BTC acts as a hedge against inflation and capital flight.
Q: Could other countries follow El Salvador’s model?
Several nations—including Paraguay, Panama, and Nigeria—are exploring similar paths. While full legal tender status remains rare, interest in Bitcoin as a reserve asset is rising globally.
Tracking National Bitcoin Reserves
Monitoring national cryptocurrency holdings is crucial for investors and policymakers alike. Tools like BitcoinTreasuries.com offer transparency into how governments accumulate and manage digital assets—though users should verify data through official filings when possible.
As more countries consider Bitcoin integration, El Salvador stands as both pioneer and case study in sovereign crypto adoption.
👉 See how global institutions are allocating digital assets—track live data and trends today.