Bitcoin tests 100,000 USD after second U.S. state — Arizona — creates reserve fund 📄🖋️

The race for Strategic Bitcoin Reserves has begun, and another U.S. state — Arizona — joins the game. Following this news, Bitcoin is gaining 2.80% on the day to 99,800 USD, testing the psychological level of 100,000 USD. Just yesterday, we reported on New Hampshire becoming the first state to pass legislation allowing part of its annual budget to be allocated to Bitcoin. Investor excitement is running high, as the race isn’t over — Texas may be next in line. 

Arizona’s new Bitcoin reserve fund — key details

On May 7, 2025, Governor Katie Hobbs signed House Bill 2749, making Arizona the second state (after New Hampshire) to establish a legal framework for a state-managed Bitcoin and digital assets reserve fund. HB 2749 is narrower than New Hampshire’s 5% “strategic reserve” model: it does not use taxpayer money or pension funds. Instead, it utilizes value from the state’s existing unclaimed property program.

How Arizona’s reserve works under HB 2749

The new law updates Arizona’s unclaimed property code, recognizing digital assets as “abandoned” if there has been no owner activity for three years.

This follows the same mechanism that has been used in U.S. escheat law for decades regarding bank deposits or stocks. Companies holding customer assets must surrender them after a period of inactivity; the state simply steps in as the custodian. The legal change in Arizona allows such assets to remain in their native form — digital assets — instead of being immediately liquidated. Furthermore, staking is now allowed to generate additional yield.

After another three years of owner inactivity, all staking rewards, airdrops, and interest earnings are transferred to a separate fund — the Bitcoin and Digital Assets Reserve Fund, managed by the State Treasurer. The treasurer (or a custodian acting on their behalf) may actively stake proof-of-stake assets to grow the reserve, but must store them with a U.S.-regulated custodian and may sell below current market prices.

The bill is designed to be budget-neutral — no taxpayer or pension money is used; it only utilizes dormant value.

Estimated reserve size

The Treasury Department currently holds $2.44 billion in forgotten assets from bank accounts, checks, and safe deposit boxes. Exact estimates of the share represented by digital assets are unavailable. Thus, the potential reserve size is difficult to determine, but it can be assumed to be in the millions.

Assuming 1% of that amount is in digital assets (~$24.4 million) and a staking APR of 5%, the fund could yield around $1.2 million annually.

Once the reserve grows in value, the Arizona office may direct the treasurer to shift up to 10% of its holdings (excluding Bitcoin) to the General Fund. Bitcoin itself is designated as a long-term, strategic asset.

This structure allows Arizona to experiment with finance based on digital assets while protecting the operational budget.

Other reserve-related bills in Arizona for 2025

• SB 1025 (vetoed May 2) – would have allowed the treasurer and pension funds to invest up to 10% of portfolios in Bitcoin and large digital assets. Governor Hobbs deemed the risk “unproven” and declined to sign.

• SB 1373 (awaiting executive decision) – largely mirrors New Hampshire’s 5% model, allowing direct state investment in Bitcoin (assets with market cap ≥ $500B). It has passed both chambers and awaits the governor’s decision.

• HB 2324 (failed but may be reconsidered) – would have directed confiscated cryptocurrencies from criminal proceedings to a separate reserve fund. It was rejected in the final vote on May 7, but sponsors have filed for reconsideration.

Why the bill matters

• Tax-neutral model: Arizona shows how to gain Bitcoin exposure without using operating or pension funds.

• Legal recognition of digital assets: HB 2749 amends the state’s unclaimed property code to recognize cryptocurrencies as a distinct asset class — the first such change in the U.S.

• A catalyst for other states: New Hampshire and Arizona now offer two clearly different models — direct investment vs. dormant asset utilization — which could serve as templates for other legislatures.

Will Texas be next?

Texas is now the clear favorite to join New Hampshire and Arizona in creating a state-level Bitcoin reserve: Senate Bill 21 (SB 21) has already passed the Texas Senate unanimously (31-0), passed the House committee on May 9, and awaits a final floor vote. If successful, the bill would go to crypto-friendly Governor Greg Abbott. A parallel House version (HB 1598) also remains active.

By comparison — Florida recently withdrew its own proposals, and the Oklahoma Strategic Bitcoin Reserve Act failed in a Senate vote, leaving Texas as the most likely candidate to pass a reserve.

Bitcoin (D1 interval)

Bitcoin is now testing resistance at the psychological level of 100,000 USD, gaining 2.85% on the daily interval. This is the second strong bullish session. The gains are clearly driven by the progressing adoption in the U.S., but that’s just one catalyst in the current macroeconomic environment. Improved sentiment in equity markets, growing M2 money supply, and loud announcements of trade negotiation progress by the U.S. administration are all playing an important role in the current rally.

Source: xStation 5