Arizona Moves Closer to Establishing the First Bitcoin Reserve

Arizona has moved closer to establishing the first Bitcoin reserve at the state level in the United States as lawmakers passed two key bills allowing up to 10% of public funds to be invested in the cryptocurrency and other digital assets.

The bills, which are now awaiting the signature of Governor Katie Hobbs to become law, were approved by the Arizona House of Representatives on Friday.

The first bill, Senate Bill 1025 (SB1025), passed with 31 votes in favor and 25 against. It amends state statutes to permit a strategic Bitcoin reserve.

The second bill, Senate Bill 1373 (SB1373), passed with 37 votes in favor and 19 opposed. It proposes a broader digital asset reserve and was introduced by state representative Jeff Weninger.

Weninger stated that the bill provides authority to invest up to 10% of public funds in Bitcoin and potentially other cryptocurrencies. “I think this probably would start as a ‘may’ for the foreseeable future,” Weninger said during discussions as reported by AZCentral.

The legislation places Arizona ahead of several other U.S. states considering similar legislation. If signed into law, Arizona could become the first state to formally hold Bitcoin as a strategic asset despite criticism from economists like Peter Schiff.

Governor Hobbs has earlier on declared her position as being against any bill signing until a solution on disability funding was reached by the two chambers. However, with the recent development on the funding legislation, she has been pressured to pass the Bitcoin reserve bills.

According to Dennis Porter, the CEO of the Satoshi Action Fund, the American voters should contact their leaders and urge them to hold strategic Bitcoin reserves. Porter highlighted the importance of continuing the process as the bills passed through different legislative stages.

ARIZONA JUST BECAME THE FIRST STATE IN THE NATION TO PASS STRATEGIC BITCOIN RESERVE LEGISLATION IN THE HOUSE AND SENATE.

ONTO THE GOVERNOR'S DESK!pic.twitter.com/GLTBdNTkpq

— Dennis Porter (@Dennis_Porter_) April 28, 2025

A decision from Governor Hobbs will be necessary for the legalization of Bitcoin in managing and investing the state’s funds in Arizona. Some pundits explain that investing in Bitcoin offers protection from inflation and other macroeconomic factors.

The bills come after the U.S. Federal Reserve Chairman Jerome Powell spoke at a recent event where he said that the central bank has no plans to create a digital dollar in the near term.

Elsewhere, the Chairman of the Swiss National Bank, Martin Schlegel said that Switzerland will not invest in Bitcoin as a reserve currency. Schlegel provided a number of arguments against the use of Bitcoin for long-term reserves, including crisis-related liquidity issues and high volatility.

Global Trends on Government Bitcoin Holdings

Arizona’s legislative push comes at a time when global government Bitcoin holdings are declining. According to a CoinGecko report published in April 2025, governments’ collective Bitcoin reserves dropped from 529,591 BTC in July 2024 to 463,741 BTC.

The U.S. remains the largest government holder with 198,012 BTC, despite recent asset liquidations. China follows with 194,000 BTC, primarily from the 2019 PlusToken Ponzi scheme seizures. The United Kingdom holds around 61,000 BTC, mostly acquired through criminal seizures, while Bhutan has mined its way to 8,594 BTC.

El Salvador continues its Bitcoin accumulation policy under President Nayib Bukele. The country now holds 6,135 BTC, with Bukele announcing daily purchases of Bitcoin for the national reserve.

Meanwhile, at the corporate level, MicroStrategy has announced a new acquisition of 15,355 BTC for $1.42 billion. The company’s total Bitcoin holdings now stand at 553,555 BTC, valued at approximately $52.76 billion.