"US States Race to Create Bitcoin Reserves"

Nearly a third of US states are exploring the creation of a strategic Bitcoin reserve, a financial frontier once considered unthinkable. While US President Donald Trump's vision for a national digital asset stockpile is still developing, states are not waiting around. Inspired by the success of other countries like El Salvador and President Trump's support for the industry, they are charging ahead with their own bold initiatives.

Sixteen US states are considering Bitcoin as part of their investment strategies, with legislation to allow public funds to be allocated to such digital assets already under discussion. In states like Arizona and Utah, where the bill has already passed committee approval, a vote in the chamber is imminent, bringing the idea of a Bitcoin reserve closer to reality.

The case for countries and states embracing strategic Bitcoin is becoming more tangible as momentum builds in the US following Trump's inauguration as president. In his first address to the sector on Feb. 4, White House crypto czar David Sacks said exploring a potential Bitcoin reserve would be "one of the first things we are going to look at" as part of the administration's internal working group.

Some market participants were disappointed that Trump did not immediately begin accumulating a strategic Bitcoin reserve. However, US states are getting serious about the idea. If some of these projects successfully clear their respective legislative procedures, this would mean state-level purchases of Bitcoin very soon, potentially well ahead of any federal government effort.

Advocates for a strategic Bitcoin Reserve (SBR) argue that such an investment could serve as a powerful hedge against inflation and currency devaluation. While central banks can print fiat currencies at will, Bitcoin's fixed supply could help protect a country's wealth from the usual risks associated with currency depreciation.

Despite concerns and doubts from various analysts, the rapid rise of Bitcoin and digital asset reserve legislation at the state level signals a significant shift in how governments view crypto—perhaps no longer as a speculative asset but rather as a long-term store of value. If the US were to move forward with an SBR, it could fundamentally serve as a massive catalyst for Bitcoin's growth.

The US is already the largest sovereign holder of Bitcoin, largely due to judicial seizures and enforcement. According to BitcoinTreasuries.NET data, the US has amassed over 207,000 BTC—roughly 1% of the total 21 million supply. Initial efforts are likely to focus on managing