Up to $3.14 Billion in State Assets Could Soon Be Converted into Bitcoin and NFTs as Lawmakers Bet Big on Digital Finance
In a groundbreaking move that could reshape how states manage public money, Arizona is poised to become the first U.S. state to establish a Bitcoin reserve, following the approval of two powerful Senate bills—SB 1025 and SB 1373.
What’s happening?
Arizona lawmakers have just passed legislation allowing up to 10% of the state’s $31.5 billion in public funds—including treasury and pension assets—to be invested in digital currencies like Bitcoin and even select NFTs.
The proposed bills also set up a Digital Assets Strategic Reserve Fund, designed to hold both seized crypto assets and future digital appropriations. Crucially, the fund includes on-chain auditability and strict risk-control standards, aiming to protect public interests while embracing financial innovation.
Governor’s move awaited:
The bills now await the signature of Governor Katie Hobbs, who holds the power to greenlight or veto what would be a historic leap into crypto territory. While she recently struck a bipartisan deal over disability funding, her stance on crypto investments remains unclear.
What’s at stake?
If approved, Arizona’s treasurer would be authorized to allocate up to $3.14 billion into Bitcoin and other digital assets. That’s enough to buy an estimated 31,000 BTC—a holding that would dwarf those of major corporate players like Tesla and Marathon Digital.
Why this matters:
This isn't just a win for crypto advocates—it’s a signal that state-level adoption of Bitcoin is becoming real policy, not just speculation. Arizona’s bold move could inspire other states—like Texas, Florida, and New Hampshire, which are already flirting with blockchain-based treasury strategies.
Crypto market responds:
Bitcoin surged back to near $95,000 following the news, riding a 25% rebound from early-April lows. Institutional demand is rising—and now, so is sovereign interest.
Final thoughts:
Should Governor Hobbs sign the bills, Arizona will go down in history as the first U.S. state to back its treasury with Bitcoin. It could be the beginning of a new era in digital public finance—where state reserves are not only diversified, but future-ready.