$23 Billion USD?! 20+ US States Look to Build Bitcoin Reserves

We could be on the verge of a watershed moment for Bitcoin, with more lawmakers than ever pushing to their states to invest in Bitcoin.

This first kicked off last year, when Donald Trump confirmed plans to build a federal Bitcoin reserve. Since he took office, this movement has gained even more traction.

Now, in addition to the US’ plans to build a national Bitcoin reserve, many states across the country are building their own individual BTC reserves as well. That includes states like Florida, Texas, Michigan, Wisconsin, and more.

That could mean that states are about to spend billions of dollars on Bitcoin.

Here’s what you need to know.

VanEck: States Could Buy 247,000 BTC

In new research from VanEck, the global investment management firm analyzed 20 Bitcoin reserve bills that have recently been put forward by state law makers in the US.

If these bills are passed, VanEck estimates it would result in 20 states buying a combined total of around 247,000 BTC.

As of press time, that would be a $23.7~ billion USD purchase.

What’s even crazier is that VanEck’s Head of Digital Assets Research, Matthew Sigel, believes this is a “potentially conservative” estimate.

So how close are we to this becoming a reality?

Lawmakers in 20+ States Push For BTC Reserves

At least 20 states in the US are having open discussions right now about how to build crypto reserves. In most cases, Bitcoin is their key target asset, but stablecoins are also a rising point of interest for several states.

According to Reuters, two states — Michigan and Wisconsin — have already used parts of their public employees’ retirement funds to buy crypto ETFs.

At the same time, other states are developing a crypto-friendly legislative framework, aiming to follow in Michigan and Wisconsin’s example or create their own digital asset stockpiles.

Here’s what’s going on in some of the most crypto-friendly regions:

• Texas and Florida have passed laws setting up a clear definition of digital assets under the Uniform Commercial Code (UCC). Moreover, Texas has declared itself a major hub for Bitcoin mining and crypto-oriented businesses.
• Utah has introduced the Blockchain and Digital Innovation Amendments bill, enabling the State Treasurer to invest up to 5% in digital assets, stablecoins, and NFTs.
• Arizona’s State Senate Finance Committee has voted 5-2 in favor of the Strategic Reserve Bitcoin Act, passing the corresponding bill to the Senate floor.
• Illinois has introduced a bill allowing the state to hold Bitcoin as a reserve asset, hedging against economic volatility.
• Wyoming puts forth a bill allowing its State Treasury to invest public funds in Bitcoin. This move aligns with its plans to issue a government-backed stablecoin.

Other states potentially planning to jump on the wagon include Alabama, Arizona, Kentucky, Massachusetts, Montana, New Hampshire, North Dakota, Ohio, Oklahoma, Pennsylvania, and South Dakota.

KuCoin has assembled statistics on the status of the federal Bitcoin reserve across these states, showing that Arizona and Utah have advanced the most.

The US Government’s Federal Bitcoin Stockpile

In addition to states building their own Bitcoin reserves, the US federal government is set to do the same thing following an executive order signed by Trump on January 23, 2025.

In particular, the order declared the governmental policy “to support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy.” 

Notably, Trump’s executive order also suggested creating the federal Bitcoin reserve from government seizures of crypto in criminal cases.

Reportedly, the national Bitcoin reserve is not going to make short-term bets on BTC price fluctuations. Instead, it is set to act as a long-term investment, with the goal of holding the asset for at least 20 years.

How Could This Impact Everyday Crypto Users?

Federal and state governments investing in crypto has significant implications for the crypto industry.

It means that large sums of money will be locked in crypto assets for an extended period, which could boost the value of assets in circulation.

It also means that millions of US citizens may potentially be forced to have personal stakes in the crypto sector. This is bound to spike people’s interest in digital currency, boosting their awareness and bringing more users and value to the industry as a whole.

In this scenario, the US government may become one of the most stable institutional investors. Bitcoin as a strategic reserve will put it on par with gold and other mainstream investment assets.

Finally, the US government launching a Bitcoin reserve may trigger a global arms race, encouraging other countries to follow suit and purchase more BTC — pushing its price upward.