Not necessarily.
It could be and it could not be, since it's working its balance internally and we don't have any information on this you can assume it to be either way, it's a matter of trust.
But in Salvador cases, I would actually suspect the opposite happening, with the government not actually liquidating coins and using a sort of $ fractional reserve to pump up the price, it would make total sense from their point of view since they would be stocking on BTC on debt fiat.
Yeah right in theory, in reality...
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wallet: Binance-coldwallet 288,126 BTC ($16,998,920,535) 1.53%