#ArizonaBTCReserve
ArizonaBTCReserve: A State-Backed Bitcoin Initiative
ArizonaBTCReserve refers to a groundbreaking legislative effort by the state of Arizona to incorporate Bitcoin into its financial strategy. On April 28, 2025, the Arizona House of Representatives passed two key bills—Senate Bill 1025 (SB1025) and Senate Bill 1373 (SB1373)—that would allow the state to allocate up to 10% of its $31.5 billion in public funds into Bitcoin and other digital assets.
### Overview of the Legislation
- **SB1025 – Arizona Strategic Bitcoin Reserve Act**
This bill authorizes the state treasurer and public retirement systems to invest up to 10% of their assets in virtual currencies, specifically Bitcoin. It also includes provisions for securely storing the assets and lays the groundwork for a potential federal Bitcoin reserve, should the U.S. Treasury establish one.
- **SB1373 – Digital Assets Strategic Reserve Fund**
This companion bill proposes the creation of a reserve fund for digital assets acquired through seizures or designated state funding. It emphasizes transparency, requiring that all transactions be auditable on the blockchain and managed with strict risk controls.
### Legislative Status
Both bills have been approved by the Arizona legislature and are now awaiting the governor’s signature. Governor Katie Hobbs has expressed concerns about the state budget, particularly in relation to healthcare for disabled residents, which could affect her decision. However, a bipartisan budget deal reached on April 24 might pave the way for her to approve the legislation.
### Implications
If signed into law, Arizona would become the first U.S. state to hold Bitcoin as part of its official reserves. A full 10% allocation would equate to an estimated $3.14 billion investment, potentially acquiring around 31,000 BTC at current market prices.
This initiative signals a growing interest among U.S. states in exploring blockchain and cryptocurrency as part of modern public finance and asset diversification strategies.
