IMF Challenges El Salvador's Bitcoin Claims as Holdings Hit $700M

El Salvador has further expanded its Bitcoin holdings, now holding over 6,300 bitcoins valued at more than $700 million, according to recent reports. The country’s National Bitcoin Office (ONBTC) announced the addition of 21 bitcoins on September 7 to commemorate the fourth anniversary of its Bitcoin Law, which established the cryptocurrency as legal tenderEl Salvador Adds 21 BTC for Bitcoin Day, Raising Holdings Past 700M^[2]. This brings the total to 6,313.18 BTC, with the portfolio valued at approximately $701 million at current pricesEl Salvador Boosts Bitcoin Reserves with 21 BTC on Bitcoin Day^[3]. The government has maintained a strategy of daily Bitcoin purchases since 2022, with officials emphasizing long-term financial sovereignty and diversificationWith 50 New Bitcoins in 30 Days, El Salvador Rises to World’s Top Six Holders^[1].

The accumulation has generated significant unrealized gains. Data from DropsTab indicates that El Salvador’s Bitcoin investments, which totaled $300.5 million in purchases since 2022, now hold $413.2 million in unrealized profitsWith 50 New Bitcoins in 30 Days, El Salvador Rises to World’s Top Six Holders^[1]. This represents a 127% increase in value since the initial adoption of Bitcoin. The country’s treasury has also integrated Bitcoin into public infrastructure, including the Chivo wallet for citizens and geothermal-powered mining operationsEl Salvador Boosts Bitcoin Reserves with 21 BTC on Bitcoin Day^[3].

However, the government’s claims of ongoing purchases have been challenged by the International Monetary Fund (IMF). A July 2025 report revealed that no new public-sector Bitcoin acquisitions occurred after December 2024, despite assertions of daily accumulationEl Salvador Lied About Bitcoin Buys in 2025, IMF Report^[4]. The IMF attributed the apparent increase in holdings to internal wallet consolidations rather than fresh market purchases. This discrepancy has raised questions about transparency, as the government continues to highlight Bitcoin’s role in national finance while aligning with IMF conditions for a $1.4 billion loan facilityEl Salvador Lied About Bitcoin Buys in 2025, IMF Report^[4].

Globally, El Salvador ranks sixth in Bitcoin holdings, trailing only the United States, China, the United Kingdom, Ukraine, and Bhutan, according to BitboWith 50 New Bitcoins in 30 Days, El Salvador Rises to World’s Top Six Holders^[1]. The country’s strategy has positioned it as a pioneer in sovereign crypto adoption, with Bitcoin’s market capitalization now surpassing $2.24 trillion—a ranking ahead of major tech firms like MetaWith 50 New Bitcoins in 30 Days, El Salvador Rises to World’s Top Six Holders^[1]. Despite market volatility, El Salvador’s holdings have demonstrated resilience, with Bitcoin’s price reaching over $112,000 per unit in September 2025With 50 New Bitcoins in 30 Days, El Salvador Rises to World’s Top Six Holders^[1].

Critics, including the IMF, have urged El Salvador to suspend further Bitcoin accumulation to stabilize its fiscal position. In response, the government has adjusted policies to make Bitcoin acceptance voluntary for businesses and agreed to phase out the Chivo wallet by late July 2025El Salvador Adds 21 BTC for Bitcoin Day, Raising Holdings Past 700M^[2]. These measures aim to address concerns about financial risks while maintaining a commitment to digital assets. Meanwhile, the country’s Bitcoin experiments continue to influence global discourse, with initiatives such as Bitcoin education programs and international partnerships, including a recent collaboration with Bolivia’s central bankEl Salvador Adds 21 BTC for Bitcoin Day, Raising Holdings Past 700M^[2].

The debate over El Salvador’s Bitcoin strategy underscores broader tensions between innovation and regulatory caution. While supporters view the country’s approach as a hedge against inflation and a step toward financial independence, skeptics highlight the risks of volatility and reliance on speculative assets. As Bitcoin’s price fluctuates and global economic conditions evolve, El Salvador’s experience will remain a focal point for policymakers and investors navigating the intersection of cryptocurrency and national financeEl Salvador Adds 21 BTC for Bitcoin Day, Raising Holdings Past 700M^[2]El Salvador Lied About Bitcoin Buys in 2025, IMF Report^[4].