El Salvador Increases Bitcoin Holdings Amid IMF Deal, Assures Compliance

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On Wednesday, El Salvador revealed that it had purchased an additional bitcoin, bringing the country’s total strategic bitcoin reserve to over 6,102 coins. The announcement follows closely on the heels of a recent agreement between the International Monetary Fund (IMF) and El Salvador, in which the IMF approved a 40-month program worth $1.4 billion. This agreement signaled a shift in the role of bitcoin in the country, downgrading its status from the legal tender it was granted in 2021.

Under the new arrangement, bitcoin can no longer be used for paying taxes, and its adoption by the public is now voluntary rather than mandatory, contrary to initial expectations. The Salvadoran government has committed to the IMF not to further accumulate bitcoin at the national public sector level. A spokesperson from the IMF stated that they had consulted with the Salvadoran authorities, who assured that the recent increase in bitcoin holdings was consistent with the agreed-upon terms of the IMF program.

While the IMF did not elaborate on how purchases made by the National Bitcoin Office do not add to the government’s exposure to the cryptocurrency, the announcement was seen as an attempt to balance the country’s growing bitcoin reserve with its international financial commitments.

Meanwhile, Salvadoran government dollar bonds saw a slight decline in price, particularly the 2050 and 2041 maturities, which dropped by 0.75 cents on the dollar. The Salvadoran government currently holds around $550 million in bitcoin, having acquired 12 more bitcoins since the IMF’s approval of the agreement last week.

Mass Federal Layoffs Could Undermine U.S. Cybersecurity, Warns Former NSA Official

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Former National Security Agency (NSA) director of cybersecurity, Rob Joyce, warned on Wednesday that the mass reduction in federal workers will have a “devastating” impact on U.S. cybersecurity and national security. Joyce testified before the House Select Committee on the Chinese Communist Party, discussing the harmful consequences of cutting government employees, particularly in areas critical for countering Chinese cyber threats.

Joyce explained that eliminating probationary employees would destroy a vital pipeline for new talent essential to combatting cyber threats from China. These workers play a key role in protecting U.S. critical infrastructure, telecommunications, and other sectors from ongoing cyberattacks.

Over 100,000 federal employees have either taken early retirement or been laid off under the direction of former President Donald Trump and advisor Elon Musk’s initiative to drastically reduce the size of federal agencies. While it’s unclear how many NSA employees have been affected, the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) has already cut more than 130 positions as of mid-February. CISA is tasked with defending civilian federal networks and facilitating collaboration between private industry and the government on cybersecurity issues.

Despite national security jobs being exempt from the cuts, some critical cybersecurity positions have still been eliminated, further raising concerns about the long-term impact on U.S. cyber defense. The White House and NSA did not respond to requests for comment, while DHS stated that the cuts would save $50 million, emphasizing that efforts are ongoing to eliminate positions that do not align with the agency’s mission.

Zscaler Raises Annual Revenue Forecast Due to Rising Demand for Cybersecurity Services

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Zscaler (ZS.O) raised its revenue forecast for fiscal 2025 on Wednesday, reflecting growing demand for its cloud-based cybersecurity solutions. Shares of the California-based company surged 6% in after-hours trading.

Enterprises are increasingly investing in AI-powered cybersecurity services to combat the rise in digital scams and online hacking, driving sales for companies like Zscaler. As a result, the company now expects annual revenue for fiscal 2025 to fall between $2.64 billion and $2.65 billion, up from its previous forecast of $2.62 billion to $2.64 billion.

Zscaler also raised its adjusted earnings per share forecast to a range of $3.04 to $3.09, up from the previous expectation of $2.94 to $2.99 per share.

“Growing adoption of Zero Trust and AI is driving strong demand for our platform,” said Zscaler CEO Jay Chaudhry, highlighting the increasing reliance on their services for secure cloud access.

The company projected third-quarter revenue between $665 million and $667 million, slightly below the median analyst estimate of $667.4 million.

In the face of rising cybercrimes, data breaches, online scams, and high-profile hacks, businesses are ramping up their investment in cybersecurity. Zscaler posted second-quarter revenue of $647.9 million, exceeding analysts’ forecast of $635.6 million.