May 2025 – Phoenix, AZ: Arizona has officially become the second U.S. state to establish a strategic Bitcoin reserve, following in the footsteps of Texas. Governor Katie Hobbs signed the bill into law this week, authorizing the state treasury to allocate a portion of its rainy day fund into Bitcoin and other digital assets.
The new legislation, passed with bipartisan support, aims to protect Arizona’s financial future by diversifying its assets amid rising concerns over inflation, federal monetary policy, and a weakening U.S. dollar. Lawmakers cited Bitcoin’s performance in volatile markets and its growing acceptance among institutional investors as key reasons for the move.
According to the bill, up to 1% of the state’s general fund surplus can be held in Bitcoin, managed by an independent crypto custody firm under the supervision of the state treasurer.
Key Reasons for the Move:
Hedge Against Inflation: As inflation remains a concern, Bitcoin is seen as a store of value.
Diversification: Digital assets offer an alternative to traditional cash reserves and bonds.
Growing Institutional Confidence: With major corporations and even countries adopting Bitcoin, Arizona seeks to be ahead of the curve.
Tech & Innovation Signal: The decision aligns with Arizona’s push to become a national hub for financial technology and blockchain innovation.
Arizona joins a growing list of governments exploring Bitcoin integration into official reserves, signaling a shift in how states manage long-term financial risk.
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