El Salvador Doubles Down With Record Bitcoin Purchase Despite Market Slump

While global traders reacted nervously to Bitcoin’s recent pullback, El Salvador saw the dip as an opportunity. The government made a record-breaking acquisition of more than $100 million in Bitcoin, purchasing 1,090 BTC in a single day — the largest one-time BTC purchase since adopting Bitcoin as legal tender. This brings national reserves to 7,474 BTC worth about $676 million.

The move marks a shift from the administration’s earlier “one Bitcoin per day” initiative toward large-scale, decisive accumulation.

Critics — including institutions like the IMF — continue to warn of financial risks tied to Bitcoin exposure. Yet El Salvador’s government remains firm, insisting that BTC accumulation is part of a long-term sovereignty strategy, designed to reduce reliance on traditional financial systems rather than time the market.

Beyond reserves, the government is integrating Bitcoin into public infrastructure. A collaboration with Pakistan aims to explore BTC-based state applications, while a separate project with U.S. firm Simple Proof is digitizing official records on the Bitcoin blockchain using timestamp verification.

Still, transparency issues persist. In July, senior financial officials claimed that no Bitcoin purchases had been made since February, contradicting President Bukele’s daily-buy narrative. The inconsistency was never formally addressed, leaving transparency as one of the administration’s most criticized areas.