El Salvador’s Bitcoin Bet Is Down Bad: $37 Million in the Hole

El Salvador's Bitcoin bet doesn't appear to be paying off.

The value of the 2,301 Bitcoin purchased by the Latin American country has now fallen by $37 million as the price of Bitcoin drops to its lowest point since December 2020.

President Nayib Bukele has spent a total of $103 million on Bitcoin, according to data compiled by Bloomberg, after El Salvador made the cryptocurrency legal tender last year. Currently, El Salvador's Bitcoin treasury has a value of $65.6 million.

Seemingly undeterred by the latest market crash, Bukele, on May 9, announced that he had purchased another 500 BTC, tweeting that El Salvador was "buying the dip." That purchase, which was worth roughly $15.3 million at the time, is now worth around $14.1 million.

El Salvador became the first country to make Bitcoin legal tender on September 7 last year. That same month, El Salvador purchased 150 Bitcoin and another 420 BTC in October.

Bukele has come under criticism for the lack of transparency in how El Salvador is managing its Bitcoin holdings, who control the private keys, and the use of public money for the president's Bitcoin project.

Despite warnings from U.S. officials, the banking sector, and the International Monetary Fund—as well as protests against Bitcoin adoption by his own citizens—Bukele has not slowed down his plans, recently unveiling his proposal for a “Bitcoin City.”

Since its all-time high of $68,789 per coin in November 2021, Bitcoin has lost 58.89% of its value, currently trading at $28,404.66, according to data from CoinMarketCap.