#ArizonaBTCReserve Arizona state approves first ever US Bitcoin reserve, set to invest 10% of $31.5B state assets

Arizona lawmakers approve bills to Invest state assets in Bitcoin and NFTs

Arizona has moved a step closer to becoming the first U.S. state to establish a Bitcoin reserve. Lawmakers in the House of Representatives on Monday approved Senate Bill 1025 and Senate Bill 1373, clearing the way for a potential 10% allocation of treasury and pension funds into Bitcoin and other digital assets.

The legislation, now awaiting Governor Katie Hobbs' signature, would authorize Arizona’s treasurer to invest up to 10% of state-managed assets in digital currencies.

Looking ahead: How much can Arizona invest in Bitcoin?

Arizona’s total public assets under management are substantial. As of 2023, the Arizona State Treasury oversaw more than $31.4 billion in assets, according to official data.

A 10% allocation, as permitted under Senate Bill 1025, would authorize up to $3.14 billion to be invested in digital assets, including Bitcoin and NFTs.

The legislation identifies Bitcoin and select "non-fungible blockchain-based assets" as eligible investments, emphasizing the need for high-liquidity, high-security instruments.

The bills further mandate that investments must comply with standard fiduciary risk management protocols, ensuring that public funds remain protected against volatility and custodial risks.

If fully deployed, a $3.14 billion Bitcoin reserve would acquire about 31,000 BTC. This would immediately make Arizona the second-largest institutional Bitcoin holder among U.S. public entities, exceeding the holdings of major corporate holders like Tesla and Marathon Digital, the largest Bitcoin mining firm.

Looking ahead, this development could set a precedent for other states and sovereign governments outside the US seeking modern means to bolster public reserves.