TLDR

  • El Salvador’s Bitcoin holdings amount to 7,560 BTC, valued at approximately $503.8 million, a decrease from roughly $800 million in October 2025.
  • Bitcoin’s price has fallen by almost 50% since its October 2025 peak, reducing the national treasury’s value by around $300 million.
  • The IMF’s $1.4 billion program commenced on February 26, 2025, with $231 million disbursed following the June 2025 review.
  • Credit default swaps reached a five-month high amidst upcoming payments of $450 million this year and nearly $700 million next year.

El Salvador’s Bitcoin investment approach is experiencing increased scrutiny due to declining prices and ongoing financing discussions. The nation’s Bitcoin treasury currently holds significantly less value than it did during the market’s peak. Official figures indicate the government possesses 7,560 BTC, with an approximate value of $503.8 million. This represents a drop from around $800 million recorded at Bitcoin’s October 2025 high.

Treasury losses widen as daily purchases continue

Data from El Salvador’s Bitcoin Office indicates the reserve stands at 7,560 BTC. Bloomberg reported that the portfolio’s value has decreased by almost $300 million over approximately four months. Bitcoin’s price has dropped by nearly 50% from its October 2025 peak, consequently diminishing the market value of the state’s digital holdings.

President Nayib Bukele has maintained the purchasing strategy. The government persists in acquiring one Bitcoin daily. This policy heightens exposure to price fluctuations as holdings increase during market downturns. Information from the Bitcoin Office confirms the nation has not halted its accumulation.

IMF program faces friction over Bitcoin and reform delays

The International Monetary Fund has expressed apprehension regarding the fiscal risks associated with Bitcoin, also emphasizing transparency and risk management. The IMF sanctioned a 40-month Extended Fund Facility on February 26, 2025, with official documents indicating total access of approximately $1.4 billion.

The initial review concluded in June 2025, resulting in the disbursement of around $231 million. However, the second review has been suspended since September 2025. Bloomberg reported that this delay occurred after a belated release of a pension system analysis. Throughout this period, the government proceeded with Bitcoin acquisitions.

“The IMF may object to funds potentially being utilized for Bitcoin acquisitions,” said Christopher Mejia of T Rowe Price. He further noted that the price decline does not alleviate these concerns. A third review is slated for March, with subsequent disbursements contingent upon its successful completion. Investors are closely monitoring whether policy adjustments will be stipulated as conditions.

Bond market signals rise as payments approach and assets shift

Credit default swaps linked to El Salvador’s debt have reached a five-month peak, based on data compiled by Bloomberg. This trend indicates an elevated perception of repayment risk. Bond obligations are also a focus, given the substantial near-term payments. The nation is due to make approximately $450 million in bond payments this year.

Figures compiled by Bloomberg reveal that obligations will increase to almost $700 million next year. Traders are connecting these deadlines to the advancement of IMF reviews. “The market would respond very negatively if the stability provided by the IMF were to disappear,” said Jared Lou of William Blair. He connected market sentiment directly to the review process.

El Salvador has also modified its reserve composition beyond cryptocurrencies. Last month, it allocated $50 million to acquire gold, coinciding with increased demand for the precious metal. Other sovereign entities have adopted varying strategies during this timeframe; for instance, Bhutan divested approximately $22.4 million of Bitcoin, whereas El Salvador continued its accumulation.