Bitcoin News Today: El Salvador Defies IMF Skepticism, Bitcoin Holdings Hit $775M

El Salvador's Bitcoin holdings reached $775 million in value as of July 2025, with the nation's sovereign reserves comprising 6,246 BTC, according to data from the National Bitcoin Office and verified by CoinMarketCap El Salvador’s Bitcoin Holdings: Government Increases Reserves to …^[1]. These holdings have generated unrealized profits of $475 million since the government's initial purchases in 2021, marking a 162% increase in volume from the 2,381 BTC acquired at the start of its crypto strategy El Salvador’s Crypto Portfolio In 2025 - tradersunion.com^[2]. The government's average purchase price per Bitcoin stands at $43,357, with total investments exceeding $103 million across varying market conditions El Salvador’s Bitcoin Holdings in 2025: How Much BTC Does the …^[3]. The country's reserves have surged due to a combination of direct purchases, including large-scale buys during market downturns, and geothermal-powered mining operations The Daily: Galaxy, Jump, and Multicoin lead $1.65B Solana …^[4].

The Salvadoran government has maintained a "buy and hold" strategy, purchasing one Bitcoin daily since 2022 and expanding its reserves through volcanic energy mining El Salvador’s Bitcoin Holdings: Government Increases Reserves to …^[1]. President Nayib Bukele recently announced an additional 21 BTC purchase to commemorate the fourth anniversary of the 2021 Bitcoin law, bringing the total holdings to 6,313 BTC valued at $710 million . The government has also diversified its acquisition methods, including a recent move to split its BTC across 14 addresses to mitigate quantum computing risks . Despite a 2024 IMF loan agreement that relaxed mandatory Bitcoin acceptance for businesses, the administration continues daily purchases, contradicting earlier statements about pausing acquisitions .

Security measures for El Salvador's holdings include cold storage in a physical vault, with 5,689 BTC transferred offline in March 2024 to protect against cyber threats El Salvador’s Crypto Portfolio In 2025 - tradersunion.com^[2]. The government also utilizes custodial wallets for operational transactions but has reduced involvement with the Chivo wallet following IMF negotiations El Salvador’s Bitcoin Holdings in 2025: How Much BTC Does the …^[3]. Mining operations, leveraging geothermal energy from volcanoes, have contributed nearly 474 BTC to reserves since 2021, further diversifying the country's acquisition strategy El Salvador’s Bitcoin Holdings in 2025: How Much BTC Does the …^[3].

Economically, Bitcoin's adoption has enhanced financial inclusion, enabling unbanked citizens to access digital transactions and remittances. Remittances account for nearly 25% of El Salvador's GDP, and Bitcoin's integration aims to reduce transfer costs and improve cross-border efficiency The Daily: Galaxy, Jump, and Multicoin lead $1.65B Solana …^[4]. However, domestic adoption remains limited, with surveys indicating only 8% of Salvadorans used Bitcoin in 2024, averaging 14 transactions annually The Daily: Galaxy, Jump, and Multicoin lead $1.65B Solana …^[4]. The government's Chivo wallet initiative, while successful in tourist hubs, has not achieved widespread usage, prompting continued education and infrastructure investments The Daily: Galaxy, Jump, and Multicoin lead $1.65B Solana …^[4].

Challenges persist, including Bitcoin's price volatility, which exposed the nation's reserves to significant valuation swings. For instance, portfolio values fluctuated between $24.5 million and $120,000 per BTC in recent years The Daily: Galaxy, Jump, and Multicoin lead $1.65B Solana …^[4]. International skepticism, particularly from institutions like the IMF, has also raised concerns about financial stability and regulatory compliance El Salvador’s Bitcoin Holdings in 2025: How Much BTC Does the …^[3]. Despite these risks, the government remains committed to its long-term holding strategy, with Bukele emphasizing Bitcoin's role as a hedge against dollarization and currency devaluation El Salvador’s Crypto Portfolio In 2025 - tradersunion.com^[2].

Looking ahead, El Salvador plans to expand its Bitcoin City project, a tax-free economic hub powered by renewable energy, and issue Bitcoin-backed "Volcano Bonds" to fund infrastructure El Salvador’s Bitcoin Holdings in 2025: How Much BTC Does the …^[3]. The government has also proposed a "rent your own volcano" initiative to attract geothermal-powered mining investments El Salvador’s Bitcoin Holdings in 2025: How Much BTC Does the …^[3]. While the future of Bitcoin as legal tender remains uncertain, the administration's continued accumulation and innovation efforts underscore its vision for digital asset leadership in the region The Daily: Galaxy, Jump, and Multicoin lead $1.65B Solana …^[4].