For $3.3 Billion Loan, El Salvador May Drop Mandatory Business Acceptance of BTC Payment

By: blockbeats|2024/12/10 14:15:01

Original Article Title: "El Salvador Plans to Repeal Mandate for Businesses to Accept BTC Payments in Exchange for $3.3B IMF, World Bank Loan"

Original Article Author: DaFi Weaver, Dynamic Trend at BlockTempo

El Salvador became the world's first country to adopt Bitcoin (BTC) as legal tender in mid-2021, a decision that was met with strong criticism and pressure from the International Monetary Fund (IMF) at the time.

Prior to this, the Salvadoran government had been seeking an IMF credit line to address its fiscal issues, but the IMF demanded that El Salvador amend its Bitcoin law, stating that Bitcoin's legal tender status was a major obstacle to the country receiving credit support. As a result, negotiations between the two parties stalled for two years.

El Salvador Plans to Repeal Mandate for Businesses to Accept Bitcoin Payments

However, according to a report by the Financial Times citing sources familiar with the matter, El Salvador is currently in negotiations with the IMF and is considering taking a step back by repealing the legal requirement for businesses to accept Bitcoin as a form of payment. Instead, businesses would autonomously decide whether to accept Bitcoin payments in exchange for a $1.3 billion loan from the IMF.

The agreement is expected to be reached in the next two to three weeks. The report states that an IMF delegation has arrived in El Salvador to finalize the details of the agreement with President Nayib Bukele's government.

It is worth noting that the agreement with the IMF will also unlock two additional loans, one of $1 billion from the World Bank, and another of $1 billion from the Inter-American Development Bank. Therefore, in total, El Salvador plans to relax the Bitcoin acceptance requirement, with the opportunity to receive up to $3.3 billion in loans.

In order to reach an agreement with the IMF, El Salvador will also need to take measures to reduce the government deficit. Sources revealed that the Salvadoran government plans to reduce the budget deficit by 3.5 percentage points of GDP over the next three years through spending cuts and tax increases. Additionally, the government will pass an anti-corruption law and increase foreign reserves from $11 billion to $15 billion.

In response to this news, an IMF spokesperson declined to comment, citing the organization's policy of not discussing ongoing negotiations.

IMF Calls for Abandoning Bitcoin Strategy

The IMF has consistently opposed El Salvador's adoption of digital currency, citing risks to financial stability and integrity, and has often called on the Bukele government to cease accepting cryptocurrency as legal tender.

In October of this year, the IMF once again recommended that El Salvador scale back its Bitcoin-related policies and strengthen the regulatory framework for digital assets. Julie Kozack, Director of the IMF Communications Department, said at the time:

“We recommend narrowing the scope of the Bitcoin Law, strengthening supervision and regulation of the Bitcoin ecosystem, and limiting the government's exposure to Bitcoin.”

As early as two years ago, when El Salvador adopted BTC as legal tender, an IMF spokesperson criticized the country's Bitcoin law, warning of “macroeconomic, financial, and legal issues” it would raise. The IMF has repeatedly highlighted the volatility and potential risks of Bitcoin, which could threaten El Salvador's economic stability, hence the call for a reassessment of related policies.

However, in August of this year, the IMF also stated that many of the risks of El Salvador's Bitcoin experiment have “not materialized” yet. While the tone seems to have softened, the statement added that El Salvador needs to minimize the risks associated with adopting Bitcoin as legal tender as much as possible.

El Salvador Holds Nearly $600 Million in Bitcoin

Currently, El Salvador continues to purchase one Bitcoin per day, with a total Bitcoin holding of 5,960 coins valued at over $580 million.

As Bitcoin reached the $100,000 milestone, El Salvador's sovereign bonds also rebounded from a significant discount to near-par trading. Bukele commented last week on the simultaneous rise in bond prices and Bitcoin, stating:

“For the first time in history, Bitcoin has driven a sovereign bond up in traditional markets.”

For .3 Billion Loan, El Salvador May Drop Mandatory Business Acceptance of BTC Payment

Original Article Link

On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.

2025 Full Year and Fourth Quarter Financial and Operational Highlights

• Financial Performance:

Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.

Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.

Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.

• Mining Operations and Costs:

A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.

The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;

The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.

As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.

• Strategic Progress:

The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.

CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."

"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."

The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."

Fourth Quarter 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.

Operating Costs and Expenses

The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.

This includes:

· Cost of Revenue (excluding depreciation): $1.553 billion

· Cost of Revenue (depreciation): $38.1 million

· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)

· Mining Machine Impairment Loss: $81.4 million

· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million

Profit Situation

The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.

The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.

The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.

Full Year 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.

Operating Costs and Expenses

The total annual operating costs and expenses amount to $1.1 billion.

Specifically, they include:

· Revenue Cost (excluding depreciation): $543.3 million

· Revenue Cost (depreciation): $116.6 million

· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)

· Miner Impairment Loss: $338.3 million

· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million

Profitability

The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.

The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.

Financial Position

As of December 31, 2025, the company's key assets and liabilities are as follows:

· Cash and Cash Equivalents: $41.2 million

· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million

· Miner Net Value: $248.7 million

· Long-Term Debt (related party): $557.6 million

In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.

Stock Repurchase

As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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