#ArizonaBTCReserve

Arizona has taken a significant step towards integrating Bitcoin into its public financial framework. On April 28, 2025, the state legislature passed two bills, Senate Bill 1025 and Senate Bill 1373, that aim to establish a Bitcoin reserve and allow for investment in digital assets.

Key Points:

Investment in Digital Assets: Senate Bill 1025 permits the Arizona treasurer to invest up to 10% of state-managed assets, including pension funds, in digital assets like Bitcoin and potentially NFTs.

Digital Assets Strategic Reserve Fund: Senate Bill 1373 creates a dedicated fund to hold seized cryptocurrency and future appropriations. This fund will be auditable on-chain and adhere to standard risk controls.

First of its Kind: If Governor Katie Hobbs signs these bills into law, Arizona would become the first US state to formally hold Bitcoin in its treasury.

Potential Allocation: With Arizona's state treasury overseeing over $31.4 billion in assets (as of 2023), a 10% allocation could mean an investment of up to $3.14 billion in digital assets, potentially including around 31,000 BTC. This would position Arizona as a significant institutional Bitcoin holder.

Governor's Decision Pending: While the bills have passed the legislature, they now await Governor Hobbs' approval. Her stance on the bills is not yet clear.

Broader Trend: Arizona's initiative aligns with a growing interest among several US states (including Texas, Florida, and New Hampshire) in exploring Bitcoin-backed reserve strategies.

Federal Developments: This also follows the federal-level interest, including a recent executive order by President Trump to establish a "Strategic Bitcoin Reserve" at the national level.

This development in Arizona is being closely watched as it could set a precedent for other states and even sovereign governments considering the inclusion of Bitcoin in their reserve assets.