Nearly two dozen US states are exploring legislation to establish strategic Bitcoin reserves, signaling a significant shift in how public funds approach cryptocurrency.

Investment management firm VanEck estimates that if these bills are enacted, the states could collectively acquire around 247,000 BTC, valued at approximately $23.7 billion at current prices.

Why are states investing in Bitcoin?

State-managed funds are considering Bitcoin for several reasons:

  • Inflation Hedge: Often called “digital gold,” Bitcoin has long been touted as a safeguard against currency devaluation.
  • Diversification: Cryptocurrencies, in general, operate independently of traditional financial markets.
  • Growth Potential: Bitcoin’s historical appreciation suggests the potential for high returns over time.

Galaxy Digital’s head of research Alex Thorn said the Bitcoin price could reach the $185,000 level by the end of 2025.

States making moves toward Bitcoin investments

Here’s a look at the states already making moves toward Bitcoin investments:

Alabama

In December, State Auditor Andrew Sorell told 1819 News that Alabama should establish a strategic Bitcoin reserve. “Crypto is here to stay,” Sorell said. “Nearly 500 million people worldwide own cryptocurrency. The debate over whether crypto will succeed has ended. Now, the fight for which states will benefit from it has begun.”

Arizona

Last month, the Arizona Senate Finance Committee approved the “Arizona Strategic Bitcoin Reserve Act,” in a 5-2 vote. The bill would allow up to 10% of Arizona’s public funds to be invested in Bitcoin and other digital assets.

Florida

Florida CFO Jimmy Patronis issued a letter to the State Board of Administration in October requesting a report on the feasibility, risk, and potential benefits of directing a portion of state retirement system monies into cryptocurrency.

Kansas

In January, the website Pensions & Investments reported that, if a new bill introduced in the Kansas State Senate passes, the Kansas Public Employees Retirement System, Topeka, will be able to invest up to 10% of its $27.4 billion assets in Bitcoin ETFs.

Illinois

On Jan. 29, the Bitcoin Strategic Bill was referred to the Rules Committee to fast-track its approval process. Illinois State Rep. John Cabello introduced the bill to establish Bitcoin as a strategic asset for the state.

Iowa

Earlier this month, Iowa State Rep. Taylor Collins introduced a bill to invest public money into Bitcoin and digital assets.

Massachusetts

State Sen. Peter Durant, a Republican representing the Worcester and Hampshire districts, recently introduced a bill that would invest the state’s unallocated or uncommitted surplus funds into Bitcoin and other digital currencies.

Michigan

Last year, the State of Michigan Retirement System disclosed owning 110,000 shares of the ARK 21Shares Bitcoin ETF, valued at approximately $6.6 million as of June 30.

Missouri

Missouri Representative Ben Keathley introduced House Bill 1217 seeking to establish a Bitcoin Strategic Reserve Fund that would allow the state treasurer to invest in and hold Bitcoin.

Montana

Montana legislators want to invest up to $50 million in digital assets, including Bitcoin.

New Hampshire

A new bill introduced by Rep. Keith Ammon could allow New Hampshire’s treasury to hold Bitcoin as a reserve asset.

New Jersey

In July 2024, Jersey City Mayor Steven Fulop hinted that the city’s pension fund was planning to gain exposure to Bitcoin ETFs.

New Mexico

New Mexico Senator Anthony Thornton recently drafted Senate Bill 275, or the “Strategic Bitcoin Reserve Act,” proposing a 5% allocation of the state’s public funds into Bitcoin.

North Carolina

In early 2023, the lower house of North Carolina’s General Assembly approved a bill to propose that the state’s Department of State Treasurer conduct a study to assess the feasibility of incorporating Bitcoin into the state’s holdings.

North Dakota

Earlier this month, the state’s legislature presented Resolution 3001, proposing to invest state funds into digital assets.

Ohio

Ohio House GOP Majority Whip Steve Demetriou proposed legislation to allocate up to 10% of state-controlled funds toward a Bitcoin reserve.

Pennsylvania

A bill from November 2024 sought to authorize the state treasurer and public pension funds to invest in Bitcoin.

South Dakota

South Dakota House Bill 1202, if passed, would permit the state government to invest public funds in Bitcoin.

Texas

Senate Bill 778 is intended to create a Bitcoin reserve separate from the state’s general revenue fund.

Utah

Satoshi Act Fund founder and CEO, Dennis Porter told Republican Senator Cynthia Lummis that Utah’s digital asset taskforce is dedicated specifically to voting on bills related to crypto and web3 during the off-season.

Wisconsin

First U.S. state to buy Bitcoin ETFs. As of Q4 2024, the State of Wisconsin Investment Board (SWIB) held 3.1 million shares of BlackRock’s iShares Bitcoin Trust (IBIT), worth approximately $588 million.

Wyoming

Wyoming lawmakers aim to permit up to 3% of state funds to be invested in Bitcoin.

With momentum growing, Bitcoin’s role in state investment strategies is evolving. If more states move forward with legislation, Bitcoin could soon become a key asset in public pension funds across the country.

For more news on the latest developments in the world of cryptocurrency and blockchain, visit Global Crypto News.

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