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 (BTC) 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.
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. Next, the bill moves to the Senate Rules Committee for debate and amendments. If passed by the full Senate, it will advance to the Arizona House of Representatives.
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. “When managing state pensions for firefighters, teachers, and police officers, it’s also essential to prioritize the bottom line and ensure the best return on investment for Floridians,” Patronis said. “This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling.”
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. Under the legislation, the Illinois State Treasurer would manage the fund, accepting gifts, grants, and BTC donations from residents and governmental entities.
Iowa
Earlier this month, Iowa State Rep. Taylor Collins introduced a bill to invest public money into Bitcoin and digital assets. See below.
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, according to a 13F filing with the U.S. Securities and Exchange Commission.
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. The bill, filed on February 6, positions Bitcoin as a hedge against inflation and aims to diversify the state’s financial holdings.
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. The Republican Representative Keith Ammon proposed legislation that would enable the state’s treasury to custody BTC.
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. At the time, Bitcoin was trading at $67,000. Fulop has remained relatively quiet on the topic ever since.
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. Fast-forward to Feb. 10, 2025: Cointelegraph reports that the NC Digital Assets Investments Act has been introduced. It allows the state to invest in digital assets through exchange-traded products.
North Dakota
Earlier this month, the state’s legislature presented Resolution 3001, proposing to invest state funds into digital assets. North Dakota Representative Nathan Toman also backs a bill to protect the rights of Bitcoin miners.
Ohio
Ohio House GOP Majority Whip Steve Demetriou proposed legislation to allocate up to 10% of state-controlled funds toward a Bitcoin reserve. He also emphasized that Bitcoin could leverage Ohio’s vast natural gas reserves to fulfill the energy demand.
Pennsylvania
A bill from November 2024 sought to authorize the state treasurer and public pension funds to invest in Bitcoin. The bill didn’t pass but generated significant discussion.
South Dakota
South Dakota House Bill 1202, if passed, would permit the state government to invest public funds in Bitcoin. It was introduced by first-term representative Logan Manhart.
Texas
Senate Bill 778 is intended to create a Bitcoin reserve separate from the state’s general revenue fund. It would collect taxes and donations in cryptocurrency. More than that, Texas has a minimum five-year embargo on selling state bitcoins.
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.
“Every single bill that has come out of that task force has ultimately passed into law over the last several years, and our strategic Bitcoin reserve legislation just passed out of that task force,” Porter said in February.
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.
Initially invested in Grayscale Bitcoin ETF before expanding holdings.
Wyoming
Wyoming lawmakers aim to permit up to 3% of state funds to be invested in Bitcoin. The bill would apply to key funds, such as the general fund and the permanent mineral trust fund, marking a potential milestone in public fund management. If approved, the state treasurer could invest directly in Bitcoin through secure custody solutions, registered custodians, or exchange-traded products.
What’s Next?
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.
