#ArizonaBTCReserve

Arizona is on the verge of becoming the first U.S. state to establish a Bitcoin reserve, following the passage of two significant bills—SB1025 and SB1373—by the state legislature on April 28, 2025. These bills authorize the state treasurer and retirement systems to invest up to 10% of Arizona’s $31.5 billion in public funds into digital assets, primarily Bitcoin.

Key Provisions of the Bills

SB1025: Known as the "Arizona Strategic Bitcoin Reserve Act," this bill permits the state treasurer and pension systems to allocate up to 10% of their portfolios to cryptocurrencies, focusing on Bitcoin.

SB1373: Establishes a Digital Assets Strategic Reserve Fund to manage seized or purchased digital assets. The fund emphasizes on-chain auditability and standardized risk controls.

If fully implemented, Arizona could allocate approximately $3.14 billion into digital assets, potentially acquiring around 31,000 BTC, assuming a Bitcoin price of $100,000.

Current Status and Next Steps

Both bills are awaiting the signature of Governor Katie Hobbs. Previously, Governor Hobbs expressed intentions to veto legislation until a bipartisan budget addressing healthcare for Arizonans with disabilities was passed. However, with recent budget agreements, there is optimism that she may sign the bills into law.

Broader Implications

Arizona's initiative aligns with a growing trend among U.S. states exploring cryptocurrency reserves. States like Texas, Florida, and New Hampshire are considering similar legislation. At the federal level, discussions about a national Bitcoin reserve have also emerged.

This move could position Arizona as a leader in integrating digital assets into public finance, potentially attracting blockchain innovation and diversifying the state's asset portfolio.