US State-Level Bitcoin Reserves to Inject $23B Into BTC

VanEck’s Head of Digital Assets Research, Matthew Sigel, has highlighted the potential impact of state-level Bitcoin reserve bills on BTC’s market. In a post on X, he stated, “We analyzed 20 state-level Bitcoin reserve bills. If enacted, they could drive $23 billion in buying, or 247k BTC.”

Impact of State-Level Bitcoin Reserves on BTC

The report analyzed various state proposals, including bills from states like New Mexico, South Dakota, Montana, and North Carolina. These proposals range from direct BTC investments through state funds to creating strategic Bitcoin reserves. Some states, like Oklahoma and Texas, are considering utilizing state treasuries, budget stabilization funds, or even seized assets to fund Bitcoin purchases.

Among the proposed bills, the estimated funding sizes vary significantly. The largest potential Bitcoin investment could come from states utilizing permanent funds, such as New Mexico’s Land Grant Permanent Fund and Severance Tax Permanent Fund, which collectively hold over $42 billion. If allocated at 5%, this could inject around $2.1 billion into Bitcoin. Similarly, Texas’ Teacher and Employee Retirement System funds could contribute $2.6 billion if they allocate 10% to BTC.

We analyzed 20 state-level Bitcoin reserve bills.
If enacted, they could drive $23 billion in buying, or 247k BTC.
This sum is independent of any pension fund allocations, likely to rise if legislators move forward. pic.twitter.com/5AZnkiwTZf

— matthew sigel, recovering CFA (@matthew_sigel) February 12, 2025

Other states, such as North Carolina, have introduced bills like the “NC Digital Assets Investments Act,” which would allow the state to allocate public funds toward BTC. The funding potential across states includes sources such as general funds, rainy day funds, and treasury cash reserves. Sigel noted that the $23 billion projection does not include “any pension fund allocations, likely to rise if legislators move forward.”

While some proposals are still in early stages, several have advanced to committees for further consideration. Others, like Montana’s House Bill 201 and Oklahoma’s Senate Bill 778, are already introduced and could set a precedent for state-level Bitcoin adoption. If these bills gain traction, state-level investments could significantly impact BTC’s liquidity and market valuation.

Also Read: Goldman Sachs Expands Bitcoin ETF Holdings, Boosts IBIT & FBTC Investments