Arizona is on the verge of becoming the first U.S. state to hold Bitcoin as part of its public funds, with two key bills—Senate Bill 1025 (SB1025) and Senate Bill 1373 (SB1373)—having passed through the state legislature. The bills now await the signature of Governor Katie Hobbs to become law. If enacted, Arizona will be able to invest up to 10% of its public funds in Bitcoin and potentially other digital assets, marking a significant step for the state and the cryptocurrency space.
SB1025 allows for the establishment of a strategic Bitcoin reserve, while SB1373 expands the reserve to include other digital assets. The bills received majority support in both the Arizona House of Representatives and Senate. SB1025 passed with 31 votes in favor and 25 against, while SB1373 passed with 37 votes in favor and 19 opposed.
The decision to move forward with these bills places Arizona ahead of other U.S. states considering similar legislation. Representative Jeff Weninger, who supported the bills, explained that the 10% cap would allow for flexibility, with Bitcoin investments likely starting as an option rather than a requirement.
However, the final decision rests with Governor Hobbs, who had previously expressed concerns over signing bills until a resolution was reached on disability funding. Despite this, the recent progress on funding legislation has increased pressure on her to approve the Bitcoin reserve bills.
If Arizona becomes the first state to hold Bitcoin as part of its public funds, it will set a precedent for other states to follow, despite skepticism from some economists, such as Peter Schiff, who criticize Bitcoin’s volatility as a reserve asset.
This legislative push also coincides with a decline in global government Bitcoin holdings. According to a report from CoinGecko, government Bitcoin reserves fell from 529,591 BTC in 2024 to 463,741 BTC in April 2025. Despite this, the U.S. remains the largest holder, with 198,012 BTC, followed by China (194,000 BTC), and the United Kingdom (61,000 BTC). El Salvador, however, continues to accumulate Bitcoin under President Nayib Bukele, with the country holding 6,135 BTC.
On the corporate front, MicroStrategy has significantly increased its Bitcoin holdings, with a recent purchase of 15,355 BTC for $1.42 billion, bringing its total to 553,555 BTC, valued at approximately $52.76 billion.
The outcome of Governor Hobbs’ decision will be pivotal in shaping Arizona’s role as a trailblazer in the adoption of Bitcoin for public fund management.
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