New Mexico Proposes Strategic Bitcoin Reserve with 5% of Public Funds
- Proposal to invest 5% of public funds in Bitcoin
- Creating a Strategic Bitcoin Reserve in New Mexico
- Alignment with the growing trend of cryptocurrency adoption in the US
The state of New Mexico is considering a groundbreaking proposal to diversify its public investments through cryptocurrency. The state Senate has introduced Bill 57, known as the “Bitcoin Strategic Reserve Act,” which proposes allocating 5% of public funds to Bitcoin. The bill was introduced by Senator Ant Thornton.
🚨 NEW: NEW MEXICO BITCOIN RESERVE BILL
SB57 Allows New Mexico to invest 5% of public funds into Bitcoin! pic.twitter.com/D2ALZkcbPm
— Julian Fahrer (@Julian__Fahrer) February 5, 2025
The proposed legislation aims to create an alternative to the traditional treasury of state , diversifying New Mexico’s investments by including Bitcoin alongside conventional assets such as stocks and bonds. The 5% allocation aims to take advantage of Bitcoin’s long-term appreciation potential.
At the time of publication, the price of Bitcoin was quoted at US$96.671,63 with a drop of 0.8% in the last 24 hours.
According to the bill, the State Investment Officer would be responsible for overseeing the Bitcoin reserve, with guidance and oversight from the State Investment Board. The bill also highlights the use of cold storage to securely store the state’s Bitcoin assets.
Senator Thornton stated that this initiative would not only diversify New Mexico’s investment portfolio but also position the state as an innovator within the rapidly expanding cryptocurrency sector. He also emphasized the potential economic benefits, including attracting cryptocurrency companies to the region and boosting the local economy.
It's true. It's NM Senate Bill 275. https://t.co/gxscEpCPx8
— Senator Ant Thornton, Ph.D. (@ThorntonforNM) February 6, 2025
The project also includes measures for transparency and public reporting, aiming to increase accountability.
New Mexico is not alone in considering such a move. Utah and other states have proposed legislation to incorporate Bitcoin into their financial strategies. In total, around 15 US states have introduced Bitcoin-related bills, reflecting the growing interest in cryptocurrency adoption.
These initiatives are in line with the federal government’s broader plan for digital asset accumulation. Crypto and AI Czar David Sacks recently confirmed that the government is considering a proposal to establish a national Bitcoin reserve, though details and timelines remain unclear.
The growing interest of US states in adding Bitcoin to their portfolios is likely to influence market dynamics. Bitcoin is currently trading at $96.476, reflecting a 0,7% decrease in the last 24 hours. Its low and high values in the last 24 hours were $96.148 and $99.167, respectively.
If proposals like those in Utah and New Mexico are approved and public funds are invested in Bitcoin, analysts expect the asset’s market value to increase. Such moves could not only drive up prices, but also help reduce the volatility often associated with Bitcoin.
