US States Push for Bitcoin Reserves Amid Rising Government Interest

• Twenty US states are introducing bills to establish Bitcoin reserves, potentially adding 247,000 BTC to government holdings.
• Michigan’s House Bill 4087 proposes Bitcoin investments, making it the latest state to explore cryptocurrency reserves.
• Sovereign wealth funds, including Abu Dhabi’s Mubadala and Norway’s NBIM, have increased their Bitcoin exposure through ETFs and investments.

Lawmakers from twenty US states have introduced legislation to establish Bitcoin reserves, signaling increased government involvement in digital assets. The move follows a significant investment by Abu Dhabi’s sovereign wealth fund Mubadala Investment Company into BlackRock’s iShares Bitcoin Trust (IBIT).

State-Level Bitcoin Reserves Gain Momentum

Several US states are advancing bills advocating for Bitcoin reserves, with potential allocations reaching billions of dollars. Asset manager VanEck’s Head of Digital Assets Research, Mathew Sigel, reported that these states could drive a combined $23 billion investment, potentially adding 247,000 BTC to government-held reserves.

The states pursuing Bitcoin reserve legislation include Oklahoma, Massachusetts, Ohio, Texas, Utah, Iowa, Illinois, Kentucky, Missouri, Maryland, New Mexico, South Dakota, Montana, New Hampshire, North Carolina, Arizona, Florida, and Pennsylvania. Among them, New Mexico, North Carolina, Oklahoma, South Dakota, and Missouri have the highest proposed allocations, with investments ranging from $1.4 billion to $2.6 billion in Bitcoin.

Michigan has recently introduced House Bill 4087, seeking to amend the state’s Management and Budget Act to allow Bitcoin investments. Representatives Bryan Posthumus and Ron Robinson sponsored the bill, making Michigan the twentieth state exploring Bitcoin reserves. Proposed funding sources for these initiatives vary, including state treasurers’ accounts, stabilization reserves, and general funds.

Federal and International Bitcoin Investments

The push for state-level Bitcoin reserves aligns with national policies supporting digital assets. President Trump’s executive order on January 23 outlines plans to evaluate a national digital asset stockpile, potentially including Bitcoin and other top cryptocurrencies.

Outside the US, sovereign wealth funds are also increasing Bitcoin exposure. Abu Dhabi’s Mubadala Investment Company disclosed a $461 million investment in BlackRock’s IBIT, making it the seventh-largest holder of the Bitcoin ETF. Norges Bank Investment Management (NBIM), Norway’s sovereign wealth fund, also holds approximately $355 million in indirect Bitcoin exposure.

The growing trend of government-backed Bitcoin reserves signals expanding institutional adoption, with additional states expected to introduce legislation supporting digital asset investments.