Witness history: The first cryptocurrency reserve state in the United States makes a stunning debut, and institutional buying is on the way!

Written by: Luke, Mars Finance

Milestones in American Financial History

On May 7, 2025, New Hampshire made a significant mark in financial history. Governor Kelly Ayotte signed the HB302 bill, making the state the first in the U.S. to officially include cryptocurrencies—particularly Bitcoin—in its strategic reserves. This groundbreaking legislation will take effect in 60 days, allowing the state treasury to invest up to 5% of its public funds in digital assets with a market capitalization exceeding $500 billion, as well as precious metals such as gold and silver. In the current market, only Bitcoin meets this criterion with a market cap of approximately $1.88 trillion, positioning New Hampshire as a pioneer in the mainstreaming of cryptocurrencies.

The significance of this initiative goes far beyond state borders. It marks a shift in the U.S. government's attitude towards digital assets from skepticism to strategic acceptance. As the first state to implement such a policy, New Hampshire is not just testing the waters but is boldly embracing a future where Bitcoin could stand alongside traditional assets like gold. This article will delve into the details of the HB302 bill, its potential economic impacts, similar legislative developments in other states, and the broader significance of Bitcoin's role in global finance.

Deconstructing HB302: A Bold Financial Experiment

HB302, introduced by Republican Rep. Keith Ammon, narrowly passed the state House by a narrow margin of 192 to 179 and a 4-1 Senate committee with bipartisan support. The bill authorizes state treasurers to invest up to 5% of public funds, including general funds and income stabilization funds, in eligible digital assets and precious metals. The initial proposal suggested a 10% allocation, but the final version was downgraded to 5% in response to concerns about volatility and safety.

The bill explicitly requires investments in assets with a market capitalization exceeding $500 billion, making Bitcoin the only cryptocurrency that meets the criteria, while the second-ranked Ethereum has a market capitalization of only about $214 billion. This targeting highlights Bitcoin as the only digital asset with scale and stability, suitable for state-level investments. The bill also stipulates secure custody methods, allowing assets to be held through state-controlled multi-signature wallets, qualified custodians, or exchange-traded products, ensuring robust security measures.

potential purchasing power

The total budget for New Hampshire in the fiscal year 2025 is approximately $15.4 billion, with the general fund being about $5.6 billion. Based on a 5% cap, the state could allocate between $280 million and $770 million for investments in Bitcoin and precious metals. State Treasurer Monica Mezzapelle stated that the initial investment could start as a pilot program of about $180 million to test market reactions before gradually expanding.

To facilitate understanding, if New Hampshire invests $280 million at a reasonable estimate of $95,000 per Bitcoin (based on recent market trends), it could purchase approximately 2,947 Bitcoins. If the investment is $770 million, it could acquire about 8,105 Bitcoins, which is equivalent to 0.04% of the total circulation of 19.7 million Bitcoins. Although this is not large on a global scale, this allocation would make New Hampshire a significant institutional holder, demonstrating its confidence in the long-term value of Bitcoin.

The passage of the bill coincides with Bitcoin's price breaking $100,000, partly due to the executive order signed by President Trump at the federal level in March 2025, announcing the establishment of a national Bitcoin reserve using 200,000 confiscated Bitcoins. The initiative in New Hampshire further amplifies this momentum, potentially driving prices higher as institutional demand continues to grow.

Why New Hampshire? The Unique Positioning of the Granite State

The passage of HB302 in New Hampshire was not accidental. The state is known for its motto "Live Free or Die" and has long fostered a culture of independence and innovation. With no state sales tax and minimal regulatory burden, it has become a haven for businesses and individuals seeking financial freedom. The state has also attracted blockchain enthusiasts and libertarians through initiatives like the "Free State Project," creating a crypto-friendly environment.

HB302 aligns with this spirit by positioning Bitcoin as a tool to combat inflation and protect the purchasing power of state funds. Unlike traditional assets, Bitcoin's decentralized nature and fixed supply cap of 21 million make it an attractive store of value, especially in an era of rising federal debt and increasing monetary uncertainty. By incorporating precious metals into the legislation, lawmakers are placing Bitcoin alongside gold, positioning it as a "hard asset" during turbulent times.

Ripple Effect: Legislative Progress in Other States

New Hampshire's groundbreaking initiative is not an isolated event. At least 26 states across the country have proposed or are actively considering legislation to establish Bitcoin or digital asset reserves, reflecting a growing recognition of the potential of cryptocurrencies. These efforts are driven by federal encouragement and the mainstreaming of Bitcoin, with varying scope and progress. Here is an overview of several key states and their initiatives, based on existing data.

Arizona: Following closely

Arizona has become a popular candidate state for establishing Bitcoin reserves. In April 2025, the state House passed two bills, SB1373 and SB1025, allowing the state treasurer to invest up to 10% of public funds in Bitcoin and other digital assets. These bills are awaiting the signature of Governor Katie Hobbs, and if passed, Arizona could become the second state to have official reserves. Based on its budget of approximately $18 billion, the 10% cap could translate to an investment of $1.8 billion, far exceeding that of New Hampshire. However, Democratic Governor Hobbs remains skeptical, and there is still a possibility of a veto.

Ohio: Long-term Commitment

The SB57 bill in Ohio was introduced by Senator Sandra O’Brien in January 2025, taking a bold approach. The bill authorizes direct investment in Bitcoin, requires a minimum holding period of five years, mandates state agencies to accept cryptocurrency payments, and allows residents and institutions to donate Bitcoin to the reserves. The bill is currently under review by the Senate Finance, Insurance, and Technology Committee, drawing attention for its ambitious scope but also facing obstacles. Based on Ohio's $86 billion budget, a 10% cap could support $8.6 billion in investments, although initial allocations may be more conservative.

Texas: Embracing Decentralization

As a center of crypto innovation, Texas Representative Giovanni Capriglione proposed the "Texas Strategic Bitcoin Reserve Act" in December 2024. The bill establishes a dedicated fund for Bitcoin, managed by the state auditor, requiring a minimum holding period of five years and allowing public donations. Based on Texas's budget of over $150 billion, a 10% cap could support $15 billion in investments, making it a potential heavyweight player in state-level Bitcoin adoption. The bill is still in the early stages, with committee reviews ongoing.

Oklahoma and Florida: Momentum Strengthens

The "HB1203 Bill" in Oklahoma was introduced by Representative Cody Maynard and aims to establish a Bitcoin reserve to leverage its growth potential. Florida is also advancing legislation that would allow the state treasurer to invest in Bitcoin, with a House vote imminent. The budgets of these two states far exceed that of New Hampshire, and if the bill passes, potential investments could range from $1 billion to $3 billion.

Rhode Island: Flexible Strategy

Rhode Island's HB6007 bill authorizes the state treasurer and retirement systems to invest in Bitcoin and other digital assets to hedge against inflation. The bill has a broad definition of digital assets, including stablecoins and NFTs, reflecting a more inclusive strategy. With an estimated budget of about $14 billion, Rhode Island could allocate up to $700 million. The bill is currently under committee review, and discussions are ongoing.

Blocked efforts and opposition

Not all states accept Bitcoin reserves. Pennsylvania, Montana, North Dakota, Wyoming, and South Dakota have rejected similar bills, citing volatility, energy consumption, and risks to taxpayer funds. Wyoming's rejection is particularly noteworthy, as Senator Cynthia Lummis has been actively advocating for Bitcoin at the federal level. These setbacks highlight the challenges of balancing innovation with fiscal prudence.

The potential purchasing power of each state

If all 26 states with active or proposed Bitcoin reserve bills adopt a 5-10% allocation, the collective purchasing power would be staggering. Assuming an average state budget of $30 billion, with a conservative 5% cap calculation, the 26 states could jointly invest $39 billion, enough to purchase approximately 410,500 Bitcoins at a price of $95,000 each, accounting for 2% of Bitcoin's circulation. With a 10% cap, this figure could double to $78 billion, or 821,000 Bitcoins. Such demand could significantly drive up prices, as Bitcoin's supply is limited.

However, political and economic realities limit this potential. Democratic-led states like California and New York are unlikely to implement such policies, while Republican strongholds like Texas and Florida are more enthusiastic. Actual investments may be phased, with New Hampshire's $180 million pilot program potentially setting an example for other states.

The New Era of Bitcoin

New Hampshire's HB302 is a watershed not only for the state but also for the global perception of Bitcoin. By legalizing cryptocurrency as a strategic asset, the Granite State has opened the door for other states. While the direct financial impact—a potential investment of $280 million to $770 million—is relatively limited, its symbolic significance is enormous. It indicates that Bitcoin is no longer an obscure experiment but a serious competitor in the financial world.

As states like Arizona, Texas, and Ohio advance their own legislation, the U.S. may be on the brink of a wave of institutional Bitcoin adoption, reshaping the market and policies. For investors, this is a clear signal: Bitcoin's role as a store of value is gaining recognition, and its weight in investment portfolios may increase. For skeptics, this poses a challenge to reassess the assumptions surrounding digital assets in a rapidly changing world.

In 60 days, when HB302 takes effect, New Hampshire will embark on its journey as a pioneer of cryptocurrency in the United States. Whether this will spark a revolution or become a cautionary tale remains to be seen, but one thing is clear: the Granite State has just changed the rules of the game.