El Salvador’s Bitcoin Reserve Hits 7,565 BTC — Bukele Doubles Down
Economic Impact of El Salvador’s Strategic Bitcoin Reserve: A Bold Bet Reshaping Global Finance
El Salvador has once again expanded its position in Bitcoin, reinforcing its role as the world’s most aggressive sovereign adopter of digital assets. As of February 16, 2026, the country’s strategic Bitcoin reserve has reached 7,565.37 BTC, underscoring President Nayib Bukele’s long-standing “buy the dip” strategy.
The move marks another milestone in a policy that began in 2021 when El Salvador became the first country to recognize Bitcoin as legal tender. While critics initially dismissed the initiative as risky, the government continues to frame Bitcoin not as a speculative gamble but as a long-term financial hedge and a pathway to economic sovereignty.
According to reporting monitored by hokanews, the latest accumulation brings El Salvador’s Bitcoin holdings to a market value approaching $635 million, depending on prevailing prices.
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A Consistent Dollar-Cost Averaging Strategy
Rather than making irregular large-scale purchases, El Salvador’s National Bitcoin Office has followed a disciplined dollar-cost averaging approach. The policy involves acquiring approximately one BTC per day, regardless of short-term price volatility.
This steady accumulation strategy has allowed the government to build its reserve gradually while smoothing out market fluctuations. Even during periods of market downturn in early 2026, officials maintained their acquisition schedule.
Dollar-cost averaging is typically used by long-term investors seeking to mitigate volatility risk. By applying the strategy at a sovereign level, El Salvador has effectively institutionalized patience as part of national financial policy.
Comparing El Salvador’s Bitcoin Holdings Globally
With 7,565.37 BTC under management, El Salvador’s reserve now exceeds the publicly known Bitcoin holdings of several sovereign entities.
While nations such as Bhutan and the United Arab Emirates have been associated with digital asset accumulation through mining or sovereign investment vehicles, El Salvador’s approach remains unique because it is fully integrated into national monetary strategy.
The country does not merely hold Bitcoin passively. Instead, it actively incorporates digital assets into public finance planning and development initiatives.
From Speculation to Strategic Infrastructure
What distinguishes El Salvador’s approach is the transition from symbolic adoption to economic integration. The strategic Bitcoin reserve is no longer presented solely as a hedge against inflation or currency depreciation. It is increasingly framed as a source of development funding.
Gold and Crypto Portfolio Balancing
In a recent diversification effort, the government reportedly allocated $50 million to gold purchases. This complements an estimated $625 million crypto portfolio, creating a hybrid reserve structure that blends traditional and digital stores of value.
This dual-asset strategy reflects an attempt to balance volatility risk while preserving long-term upside potential.
Supporting Small and Medium Enterprises
Officials have announced a $100 million initiative aimed at strengthening small and medium-sized businesses. The program leverages the country’s growing expertise in digital assets, blockchain technology, and crypto infrastructure.
By channeling capital into domestic enterprises, policymakers aim to convert digital asset appreciation into tangible economic growth.
Investment in Education and AI Infrastructure
Another component of the broader strategy includes deploying artificial intelligence tutors across 5,000 public schools. Funding for this initiative is partially supported by gains and cost efficiencies associated with the national digital reserve.
If successful, the program could position El Salvador as an early adopter of AI-enhanced public education systems in Latin America.
Economic Implications for Inflation and Sovereignty
One of the original motivations behind adopting Bitcoin was to reduce dependency on external monetary systems.
El Salvador does not issue its own fiat currency and has long relied on the U.S. dollar. By building a strategic Bitcoin reserve, the government seeks to diversify its monetary exposure and strengthen financial independence.
Bitcoin’s decentralized nature allows it to operate outside traditional central banking systems. For a small emerging economy, this offers a potential hedge against geopolitical or monetary policy shifts abroad.
However, volatility remains a key risk factor. Bitcoin’s price movements can be sharp and unpredictable, meaning reserve valuations fluctuate significantly.
Global Attention and Regional Influence
El Salvador’s strategy has not gone unnoticed. Policymakers across Latin America are closely observing the outcomes of the Bitcoin reserve experiment.
Brazil, for example, has reportedly discussed proposals to accumulate up to one million BTC over five years, though such plans remain speculative.
If larger economies begin to follow similar models, 2026 could mark the beginning of a new phase in sovereign digital asset competition.
The U.S. Regulatory Factor
Global crypto policy developments, particularly in the United States, may significantly influence the future of sovereign Bitcoin reserves.
Many analysts are watching the U.S. Senate for potential crypto legislation that could shape institutional adoption and market stability. Clear regulatory frameworks in major economies could legitimize digital assets further and reduce perceived systemic risk.
For El Salvador, favorable global regulatory conditions would likely strengthen confidence in its long-term Bitcoin strategy.
Risk Considerations and Criticism
Despite notable gains, El Salvador’s Bitcoin strategy continues to attract criticism.
Concerns include:
Price volatility impacting national balance sheets
Liquidity risks during severe market downturns
Limited diversification within the digital asset segment
Political concentration of decision-making authority
International financial institutions previously expressed skepticism regarding the adoption of Bitcoin as legal tender. However, the government has maintained that its strategy prioritizes long-term resilience over short-term optics.
Long-Term Outlook: A Model or a Warning
Whether El Salvador becomes a case study in financial innovation or a cautionary tale depends largely on Bitcoin’s long-term trajectory.
If Bitcoin continues to mature as a global store of value, early sovereign adoption could yield substantial strategic advantages.
Conversely, prolonged market instability could challenge the sustainability of heavy digital asset exposure.
For now, the numbers indicate that patience has paid off. A reserve nearing $635 million demonstrates that disciplined accumulation during volatility can generate meaningful value.
Conclusion
The expansion of El Salvador’s strategic Bitcoin reserve to 7,565.37 BTC represents more than a headline milestone. It signals a broader economic experiment blending digital assets, public finance, and national development policy.
By combining dollar-cost averaging, gold diversification, SME investment programs, and AI education initiatives, the country is attempting to translate crypto accumulation into structural growth.
As other nations weigh similar moves, El Salvador’s approach may serve as a template for sovereign digital asset management in the years ahead.
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