States Are Stockpiling Bitcoin and It’s a $23 Billion Power Move 🚀

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Oh, America. Land of the free, home of the brave, and now apparently, the “Bitcoin bargain hunters”? 🛒 Different states have decided that Bitcoin isn’t just for tech bros and people who think gold is too heavy—it might actually be government-worthy! So far, 20 states have decided to throw their legislative hats into the crypto ring, making proposals to stash Bitcoin alongside their other…err…less exciting assets. Take that, treasury bonds! 😏

Bitcoin Reserves: Coming Soon to a State Near You 📜💰

Matthew Sigel, the brainiac in charge of Digital Assets Research at VanEck, is convinced this whole thing could be a massive game-changer. Like, who-needs-a-dollar-when-you-have-a-digital-coin kind of massive. If all these bills magically fly into law (unlikely, let’s face it—Congress isn’t exactly Speedy Gonzales), the states could end up buying about 247,000 BTC. That’s like…$23 billion in today’s market. 🤑

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.

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

At the risk of stating the obvious (🤓), these legislative proposals are at various stages of progress. Some are still in “introduce and pray” mode, whereas a few have managed to charm their way into committees for consideration. Utah has even made it through the second committee. Slow clap for Utah. 👏👏

Meanwhile, the states that are taking this the most seriously seem ready to commit up to 10% of their funds to Bitcoin. Enter the “big spenders” like North Carolina and New Mexico, who are ready to throw down $2.6 billion and $2.1 billion respectively. For those of you keeping track in Bitcoin lingo, that’s 27,118 BTC and 21,711 BTC. Fancy! 🤓

Ripple Effects on the Market 📈🤔

But wait—there’s more! Sigel says these potential billion-dollar purchases are just the appetizer. The main course? Pension fund allocations. (Admit it: you just got way more interested in pensions than you thought you ever would.) As if Bitcoin didn’t already have enough FOMO driving its price upward!

Here’s the kicker: where the heck is the money coming from? Well, each state’s funding plans have a different flavor. New Mexico, for one, is eyeing land grant permanent funds, the Tobacco Settlement Permanent Fund (yes, really), and basically any pile of cash that hasn’t been stapled to something else. 🥴

If these proposals get the legislative thumbs-up, it could mean a tidal wave of fresh cash flowing into Bitcoin. Who knows? Maybe Bitcoin traders will start naming their yachts after their states. “Ahoy, S.S. Utah!” 🚤

But for now, we wait. Because, let’s face it, state legislators aren’t exactly speed demons. Grab some popcorn and let’s see how this financial soap opera shakes out. 🍿

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2025-02-12 19:57