Various states in the United States explore Bitcoin reserve strategies, attracting market follow.

Recently, several states in the United States have started to incorporate Bitcoin into their state reserves, attracting widespread attention from the market. Among them, New Hampshire and Arizona have taken the lead in completing legislation, marking a new chapter in state treasury holdings of cryptocurrencies. These two states have adopted vastly different strategies, reflecting local governments' varying attitudes and risk tolerance towards high-volatility, decentralized assets.

New Hampshire: Conservative and Steady Diversification Strategy

New Hampshire has adopted a similar approach to "Treasury-level asset diversification." The state's new law allows the state treasury department to invest up to 5% of the general fund and emergency fund into digital assets with a market capitalization exceeding $500 billion for a continuous year, and in practice, only Bitcoin meets this standard.

In terms of asset custody, New Hampshire offers three options:

1. State Treasury Self-managed Multi-signature Cold Wallet
2. Entrust to licensed special purpose deposit institutions or regulated banks
3. Hold Bitcoin ETFs approved by regulatory agencies.

State finance departments need to disclose holdings, costs, and unrealized gains and losses in financial reports on a quarterly basis. The bill also prohibits the use of leverage, borrowing, or mortgaging to minimize credit risk.

Arizona: Innovative Zero-Cost Strategies

In contrast, Arizona has adopted a more innovative "zero-cost" approach. The new law allows the state government to transfer unclaimed crypto assets into the newly established "Bitcoin and Digital Asset Reserve Fund" after a three-year search period. The fund can also receive all derived airdrops and staking rewards, forming a compounding cycle without the need for additional budget.

The Arizona bill does not set a market value or liquidity threshold, theoretically allowing for a variety of assets ranging from Bitcoin to small cryptocurrencies. The state permits assets to participate in full-chain staking to earn yield, but this also exposes the state treasury to risks from validator penalties or smart contract errors.

State financial departments can convert up to 10% of their non-Bitcoin holdings into cash to subsidize general fund expenditures. The Bitcoin portion is locked and cannot be used unless otherwise legislated.

Progress in Other States

In addition to New Hampshire and Arizona, several other states are also exploring similar policies:

• Texas: The bill has passed the Senate and is awaiting a vote by the full House.
• Oklahoma: The House passed the bill, but it was defeated in the Senate committee.
• Illinois: The bill is still in the preliminary stage.
• Missouri: Progress stalled after the public hearing.
• Florida: The relevant bill has been withdrawn.

Market Impact Analysis

Although these state-level reserve policies have sparked heated discussions in the market, the actual scale of funding is relatively limited. For example, even with full allocation, New Hampshire is expected to have only $300-400 million, accounting for less than 0.1% of Bitcoin's daily trading volume.

The main impact of these policies may be more reflected in market sentiment and narratives. For example, within 48 hours after the signing of the bills in New Hampshire and Arizona, the price of Bitcoin rose by about 3%, and the volume of related social media discussions surged by over 240%.

However, this "official holding" strategy also faces risks. Significant price fluctuations may put financial pressure or political scrutiny on state governments. Therefore, when investors follow this trend, they need to consider factors such as legislative progress, actual allocation amounts, and the public disclosure of on-chain addresses.

Overall, state-level Bitcoin reserve policies reflect the trend of cryptocurrencies gradually gaining official recognition, but their long-term impact remains to be seen. Market participants should closely follow developments in this area while maintaining a cautious attitude.