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

2:54 pm 8 May 2025

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

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 400 000 XTB Group Clients from around the world.