A Bitcoin strategic reserve is a financial store of value that has been discussed by many countries. New Hampshire has now become the first US State to introduce one. We discuss this in the article below.
The state of New Hampshire has become the first to introduce a Bitcoin strategic reserve. House Bill 302 was the bill that signed this into law, and it has opened up the possibility of 5% of New Hampshire’s public funds being allocated to cryptocurrency.
What Makes New Hampshire’s Bill So Unique?
Governor Kelly Ayotte announced that it will be the first of its kind in the nation. The goal was achieved by signing a new law allowing the state to invest in cryptocurrency and precious metals. Metal and assets must have a market cap of $500 billion, and Bitcoin will be part of that. 
However, New Hampshire’s order is different from that which has been signed in by national legislation. The idea there is for one made up of cryptocurrencies that will be seized from criminal enterprises. New Hampshire is planning to actively buy crypto using public money.
The US government is already rumored to hold around 200,000 Bitcoin, worth roughly $17 billion. This total will be worth even more if Bitcoin breaks its all-time high of $108,786, set in January this year. A recent run has seen it test this marker, with the Bitcoin price today hitting $105,605 before a marginal reverse. Spurred on by more favourable economic conditions across the globe, breaking this ceiling could lead to a fresh bull run.
Many States Still Apprehensive
Not all states have jumped at the chance. Last week, Arizona saw the blocking of a bill by Governor Katie Hobbs. Known as Senate Bill 1025, it passed the House by a narrow vote before being annulled by her. In an official statement, she announced, “The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currencу.”
However, she did sign a bill in to allow seized funds to be placed into a strategic reserve. This allows the state to claim ownership of any digital assets if the owner fails to respond to communication within three years. This seems to be a prudent move by the Senator, in which she is building a reserve without risking public funds.
Similar bills have recently been blocked across the United States. These have involved states such as Florida, Wyoming, and Pennsylvania, amongst others.
Texas has advanced its bill on a strategic reserve to its final stage. This would make it the second US state to do so. On Wednesday, the Texas House Committee on Delivery of Government Efficiency passed Senate Bill 21. It will allow the state to invest around $500 billion in crypto assets over the next few years. Most notable is that the bill swept the floor in a 25-5 vote two months ago.
Legislation was first put forward in January with the Senate Bill 778. In this, there were more restrictions and a $500 million cap. This was repurposed with an annual purchasing limit and moved from Bitcoin alone to the inclusion of other crypto assets.
However, it is the Governor who can sign in or veto this. As seen in Arizona, this is not always the case. Texas legislature adjourns on June 2, so it is assumed a decision will be reached before then.
Possible Irish Strategic Reserve on the Horizon
Across the Atlantic, there has also been a possible move to introduce a strategic reserve in the country of Ireland. This has come from the most unlikely of sources: Former UFC fighter turned whisky distiller Conor McGregor. He has announced that he intends to run as a candidate for President in the March elections, and that one of his first moves will be to introduce a strategic reserve using Bitcoin.
While his post on X was lacking in details, he did say he would host a live seminar to talk about it. This will include key speakers from the crypto sphere, including prominent crypto influencers. He also added that crypto was a way to give power back to the people, and that is what he intends to do with it.
McGregor has had a history with cryptocurrency in the past. He attempted to fund his own memecoin known as “REAL”. However, it failed to reach its funding goal, and the idea was shelved. 
While this seems quite revolutionary, many countries have already begun stockpiling Bitcoin and cryptocurrencies. The United States already has an estimated 207,189 BTC, and it is quickly getting caught up by others. This includes China at 194,000 BTC and the United Kingdom at 61,000 BTC. Many countries have also introduced legislation to establish further reserves. These include Argentina, Japan, Hong Kong, and Brazil.
The outcome of this remains to be seen. Bitcoin and other Cryptocurrencies are notoriously volatile. As fairly new assets, it is now apparent that this is their inherent nature. However, it is believed that with more institutional investment, this will become less so. A strategic reserve is a perfect example of this, and one way crypto is being incorporated into mainstream finance. In turn, this will bring institutional investors and can only result in price increases over the long term.