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El Salvador Boosts Bitcoin Reserves Despite IMF Agreement

The government of El Salvador, led by President Nayib Bukele, has increased its Bitcoin holdings, continuing its pro-crypto stance despite an agreement with the International Monetary Fund (IMF).

El Salvador purchased 12 Bitcoin, raising its total reserves to 6,044 BTC, worth over $617 million. The National Bitcoin Office confirmed the acquisitions, which included 11 BTC purchased for over $1 million on Jan. 19 and another 1 BTC for $106,000 on Jan. 20. Despite earlier commitments to the IMF to scale back certain Bitcoin initiatives, the country remains committed to its strategic Bitcoin goals.

The purchases were made on Jan. 19 and Jan. 20, coinciding with Bitcoin reaching a new all-time high of over $109,000 before President Donald Trump’s inauguration as the 47th U.S. president.

The transactions were publicly disclosed by El Salvador’s National Bitcoin Office via an X post, reaffirming the country’s commitment to Bitcoin as part of its economic strategy.

Despite securing $1.4 billion in funding from the IMF, which required curtailing some Bitcoin operations, El Salvador continues to see Bitcoin as a strategic asset. The country’s Bitcoin portfolio has reportedly generated a profit of $179 million, according to the Nayib Bukele portfolio tracker. El Salvador’s Bitcoin purchases align with its broader vision of establishing itself as a global Bitcoin hub.

The Bitcoin purchases follow El Salvador’s history of adopting Bitcoin as legal tender in September 2021, the first country to do so. While the government agreed to phase out certain initiatives like the Chivo wallet and made Bitcoin acceptance voluntary for businesses, it has continued accumulating Bitcoin reserves. This strategy underscores the Bukele administration’s confidence in Bitcoin as a long-term investment despite skepticism, as surveys show that 92% of Salvadorans avoid using Bitcoin for daily transactions.

El Salvador’s bold move contrasts with other nations, such as Bhutan, which has reportedly mined Bitcoin quietly for years, amassing a digital asset portfolio of approximately $780 million. The developments reinforce the growing role of Bitcoin in global financial strategies.

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