#ArizonaBTCReserve Arizona is making strides in becoming the first US state to establish a Bitcoin reserve. Here's what's happening¹ ²:

- *Legislative Approval*: The Arizona House of Representatives has passed two bills, Senate Bill 1025 and Senate Bill 1373, allowing the state to invest up to 10% of its treasury and pension funds in Bitcoin and other digital assets.

- *Potential Investment*: With approximately $31.4 billion in public assets under management, a 10% allocation would translate to around $3.14 billion invested in digital assets, potentially making Arizona the second-largest institutional Bitcoin holder in the US.

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

- *Governor's Signature*: The legislation now awaits Governor Katie Hobbs' signature, which would authorize the allocation process. If signed, Arizona would become the first US state to formally hold Bitcoin in its treasury.

- *Precedent for Other States*: This move could set a precedent for other states and sovereign governments to explore Bitcoin-backed reserve strategies, potentially driving further adoption of digital assets in public finance.

Some key details about the proposed Bitcoin reserve:

- *Potential BTC Holdings*: A fully implemented $3.14 billion reserve could translate to roughly 31,000 BTC.

- *Risk Management*: The legislation emphasizes compliance with standard fiduciary risk management protocols to safeguard public funds against volatility and custody risks.

- *Alignment with Other States*: Arizona's initiative mirrors ongoing legislative momentum in states like Texas, Florida, and New Hampshire, which are exploring Bitcoin-backed reserves to attract blockchain innovation and diversify public asset portfolios.