Arizona Moves to Create Strategic Bitcoin Reserve, Bitcoin Surges 1.313%
Bitcoin's latest price was $95085.90, up 1.313% in the last 24 hours. This surge in price has sparked renewed interest in the cryptocurrency market, with many investors and analysts speculating on the factors driving this growth. One of the key developments contributing to Bitcoin's recent performance is the increasing institutional adoption of the cryptocurrency. Companies and financial institutions are recognizing the potential of Bitcoin as a store of value and a hedge against inflation, leading to significant investments in the asset.
In a significant move, Arizona became the first state in the United States to pass legislation creating a Strategic Bitcoin Reserve. The bill, sponsored by Republican Senator Wendy rogers, was approved by both chambers of the legislature on April 28, with votes largely falling along party lines. The legislation authorizes the state treasury to invest a portion of public funds in Bitcoin, aiming to diversify assets, hedge against inflation, and position Arizona at the forefront of digital financial innovation. Proponents of the bill highlight Bitcoin's fixed supply and decentralized nature as advantages over traditional fiat reserves, especially in light of concerns over national debt and currency devaluation. However, critics have raised concerns about Bitcoin's extreme price volatility and the lack of federal regulation surrounding cryptocurrencies, questioning the wisdom of investing public funds in such speculative assets. The bill now awaits Governor Katie Hobbs' consideration, who has pledged to veto all bills until a new budget is passed, casting uncertainty over the bill's prospects. If signed into law, Arizona would become the first us state to officially integrate Bitcoin into its fiscal strategy.
Meanwhile, Strategy, formerly known as microstrategy, made a significant acquisition of 15,355 Bitcoin worth $1.4 billion last week, marking its third-largest purchase of the asset this year. The Tysons, Virginia-based company now owns around 554,000 Bitcoin. This acquisition was funded through a mix of sources, including the sale of 4 million worth of common shares and $37.5 million raised through the sale of its perpetual "STRK" preferred stock. Strategy's recent purchase is part of its ambitious "21/21 Plan," which involves raising $21 billion through an at-the-money equity offering program and $21 billion by issuing fixed-income securities like strk. With this acquisition, Strategy is over halfway through its three-year roadmap to buy Bitcoin using corporate debt. The company has sold around $20.9 billion worth of common shares since establishing its equity offering program and can still sell $29.92 worth of STRK shares through a program established in March. Strategy's stock price has rallied, reflecting the company's commitment to Bitcoin as a strategic asset.
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