El Salvador Buys $100M in Bitcoin as Crypto Market Dips

El Salvador has once again demonstrated its commitment to Bitcoin by significantly increasing its national holdings during a period of market weakness. President Nayib Bukele announced the acquisition of approximately 1,090 Bitcoin in a single day, marking the largest one-time addition to the country's strategic reserve to date. This move comes as the Bitcoin price has experienced a sharp decline, briefly falling below $90,000, allowing the nation to accumulate at lower levels.

The purchase, valued at around $100 million, was highlighted by Bukele with a simple "Hooah" exclamation and a screenshot from the National Bitcoin Office dashboard. This addition aligns with El Salvador's ongoing strategy of daily Bitcoin acquisitions, a policy initiated in late 2022 that has continued despite various challenges. The country's total reserves now stand at roughly 7,474 Bitcoin, worth hundreds of millions of dollars depending on current market valuations.

This development shows El Salvador's position as a pioneer in nation-state Bitcoin adoption, building on its decision to make the cryptocurrency legal tender several years ago. The timing of the buy reflects a contrarian approach, capitalizing on downturns to strengthen the reserve. Observers note that such actions reinforce confidence in Bitcoin's long-term value, even as broader crypto markets face volatility.

Questions Surround IMF Agreement Compliance

The latest accumulation has sparked discussion regarding El Salvador's $1.4 billion loan arrangement with the International Monetary Fund, finalized earlier in 2025. That deal included provisions to limit public sector involvement in Bitcoin purchases and related activities to mitigate fiscal risks. Finance officials had previously informed the IMF that no new Bitcoin had been acquired since February 2025, attributing reserve increases to internal wallet consolidations rather than market buys.

Bukele and the National Bitcoin Office have maintained transparency through public dashboards and on-chain tracking, insisting the strategy remains intact. Past IMF reports have described similar reserve growth as consistent with agreement terms when involving transfers between government entities. Analysts are monitoring whether this substantial addition will be viewed similarly or prompt further review during upcoming compliance assessments.

El Salvador's approach continues to draw global attention, blending economic diversification with digital asset integration. The nation has structured its Bitcoin holdings through dedicated offices and reserves, aiming to position itself as a leader in this space. As markets fluctuate, the country's persistence in building its stack highlights a sustained belief in Bitcoin as a strategic asset.

This recent purchase not only boosts the reserve but also serves as a signal during uncertain times. With Bitcoin prices showing signs of recovery, El Salvador's holdings represent a growing portion of its national balance sheet. The government has expressed intent to maintain its accumulation policy, potentially adding more if prices remain favorable.

International stakeholders, including the IMF, have emphasized the need for careful management of associated risks. El Salvador has made adjustments over time, such as making Bitcoin acceptance voluntary for private businesses, to align with broader financial goals. The balance between innovation and stability remains a key focus for the administration.