North Dakota proposes investing state funds in Bitcoin

North Dakota is considering a significant shift in its investment strategy by proposing to include Bitcoin (CRYPTO:BTC) and precious metals in its state treasury. 

On January 11, 2025, the North Dakota State Legislature introduced Resolution 3001, which aims to diversify state assets to mitigate the impact of inflation. 

The resolution encourages the allocation of select state funds into digital assets, reflecting a growing trend among U.S. states to explore cryptocurrency investments. 

The sponsors of the resolution, including Representatives Nathan Toman and Matthew Heilman, emphasized the need for prudent investment strategies in light of changing economic conditions. 

“Whereas changing economic conditions and emerging investment opportunities require prudent investment of the state's financial resources,” the resolution states.

If passed, the resolution would direct the State Treasurer and Investment Board to consider investing portions of key state funds in digital assets. 

However, it does not specifically name Bitcoin as an eligible asset, unlike a similar proposal introduced in New Hampshire, which effectively limits investments to Bitcoin based on market capitalisation criteria.

John Bjornson, director of the North Dakota Legislative Council, noted that while the resolution encourages exploring different asset types, it does not have the force of law and lacks specific definitions. 

The proposal is set to be voted on soon but is largely seen as symbolic at this stage. 

Other states, including Florida, Texas, and Pennsylvania, are also exploring similar initiatives to establish strategic Bitcoin reserves. 

As discussions around cryptocurrency integration into state finances gain momentum, advocates stress the urgency for states to act swiftly against inflationary pressures. 

“The state that is last to build Bitcoin reserves will lose,” remarked New Hampshire Representative Keith Ammon, highlighting the competitive nature of these legislative efforts.

At the time of reporting, the Bitcoin price was $94,772.80.