Bitcoin boom fuels El Salvador’s and Strategy’s profits

Strategy (formerly MicroStrategy) and El Salvador showcased huge paper gains from their Bitcoin holdings after the flagship crypto surged to a new all-time high above $124,000.

Strategy’s Bitcoin holdings reach ATH

On Aug. 13, Strategy Chairman Michael Saylor announced that the company’s Bitcoin portfolio had reached a record high of $77.2 billion.

This nearly doubles the $41.8 billion valuation recorded in 2024 and marks a staggering 40-fold increase from the $2.1 billion the firm invested when it began accumulating BTC in 2020.

Data from Saylor Tracker shows the firm currently holds 628,946 BTC, which is worth about $76.52 billion at current market prices. The holdings translate to paper profits of more than $30 billion as Strategy had invested roughly $46 billion in the crypto at an average price of $73,301 per coin.

Notably, Saylor’s accumulation strategy faced initial skepticism from critics who questioned the risks of such heavy exposure to a volatile asset.

However, BTC’s rally has vindicated this approach, placing Strategy among the world’s largest corporations.

Building on this momentum, the firm is expanding its Bitcoin-centric offerings. It has launched a suite of BTC-backed financial instruments to attract additional investment and further grow its Bitcoin reserves.

El Salvador flaunts gains

El Salvador is also simultaneously celebrating its own Bitcoin windfall amid the current bull market situation.

On Aug. 13, President Nayib Bukele shared data showing that the nation’s holdings have grown to $768.85 million from an initial investment of $300.5 million. This represents a profit of roughly $468.3 million, or 155.82%.

Over the years, the Central American country has championed Bitcoin adoption by executing daily purchases using a disciplined dollar-cost-averaging approach.

According to blockchain analytics firm Lookonchain, an investor replicating El Salvador’s daily buying strategy would have yielded a 115% return.

Meanwhile, El Salvador is also pushing forward with plans for a dedicated Bitcoin bank to further integrate the top crypto into its broader financial system.

However, the country has faced significant pushback from institutions such as the International Monetary Fund (IMF) over its adoption of Bitcoin.

The IMF has consistently cautioned against further BTC purchases and recently suggested that some reported acquisitions may reflect internal wallet transfers rather than fresh Bitcoin buys.