#ArizonaBTCReserve Arizona is making strides in becoming the first US state to establish a Bitcoin reserve. The state legislature has passed two bills, Senate Bill 1025 and Senate Bill 1373, which would allow the state to invest up to 10% of its $31.5 billion in public funds in digital assets, including Bitcoin. This move aims to diversify public asset portfolios and attract blockchain innovation.

*Key Details:*

- *Investment Allocation*: Up to 10% of Arizona's public funds, approximately $3.14 billion, could be invested in Bitcoin and other digital assets.

- *Digital Assets Strategic Reserve Fund*: The bill establishes a fund to hold seized crypto assets and future appropriations, with mandates for on-chain auditability and standardized risk controls.

- *Potential Impact*: If fully deployed, Arizona's Bitcoin reserve would acquire around 31,000 BTC, making it the second-largest institutional Bitcoin holder among US public entities.

- *Governor's Decision*: The bills now await Governor Katie Hobbs' signature, which would authorize the allocation process. Governor Hobbs has not yet signaled her position on the Bitcoin bills ¹.

This development could set a precedent for other states and sovereign governments to follow suit in adopting Bitcoin as a reserve asset ².