While the U.S. federal government is discussing the creation of a Bitcoin strategic reserve, 21 states have already begun taking steps to create their own reserves, according to new research from investment firm VanEck.
The report, which analyzes legislative proposals in various states, estimates that state-led Bitcoin purchases could reach as much as $25 billion. Analysts Nathan Frankovitz and Matthew Sigel called that figure both “optimistic and conservative,” noting that while the odds of these proposals passing are low, their estimates are based on the upper bounds of each bill. Additionally, VanEck allocated zero allocations because some states have yet to announce how much Bitcoin they plan to purchase.
The analysis does not take into account pension fund allocations already made in states such as Michigan and Wisconsin that have previously incorporated Bitcoin into their investment strategies.
If these purchases happen, they could have a profound impact on Bitcoin’s market trajectory. Similar to MicroStrategy’s aggressive Bitcoin accumulation, which is currently worth around $31 billion, government purchases could push Bitcoin’s price to all-time highs.
The growing interest in bitcoin reserves is not limited to the United States. Experts say other countries, particularly those looking to diversify their reserves or hedge against geopolitical risks, could soon follow suit.
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Galaxy Research previously reported that “competition among groups of countries, particularly non-aligned states, those with large sovereign wealth funds, and even those hostile to the US, will lead to the adoption of strategies to mine or otherwise acquire Bitcoin.”
For states and the federal government, Bitcoin holdings could offer diversification beyond traditional U.S. Treasury holdings. Bitcoin supporters argue that if cryptocurrency reserves become a standard financial strategy, maintaining Bitcoin reserves could position governments ahead of the curve.
VanEck’s analysis ranks the following 21 states exploring Bitcoin investments based on potential allocation and the number of BTC ($95,213.81) they could hold:
- Arizona – $8.74 Billion (91,657 BTC)
- Florida – $3.02 Billion (31,694 BTC)
- North Carolina – $2.63 Billion (27,573 BTC)
- Pennsylvania – $2.36 Billion (24,736 BTC)
- New Mexico – $2.1 Billion (22,076 BTC)
- Missouri – $1.71 Billion (17,916 BTC)
- South Dakota – $1.67 Billion (17,492 BTC)
- Oklahoma – $1.47 Billion (15,379 BTC)
- West Virginia – $1.1 Billion (11,536 BTC)
- Massachusetts – $883.1 million (9,262 BTC)
- Wyoming – $813 million (8,526 BTC)
- Texas – $182.9 million (1,918 BTC)
- Iowa – $273.6 million (2,869 BTC)
- New Hampshire – $211.63 million (2,220 BTC)
- Michigan – $398.26 million (4,147 BTC)
- Montana – $50 million (524 BTC)
- Illinois – Unknown
- Kentucky – Unknown
- Maryland – Unknown
- North Dakota – Unknown
- Ohio – (Multiple bills pending)
*This is not investment advice.
Continue Reading: VanEck Reveals the Total Amount of Bitcoin US States Could Buy – What Will Happen to BTC Price If They All Buy?
