Michigan Seeks to Lead as First State with a Bitcoin Reserve as Institutional Interest Grows

On September 19, 2025, Michigan legislators moved forward with a proposal that would permit up to 1% of the state’s investment holdings to be placed into

, representing a landmark moment for state-level cryptocurrency initiatives in the United States. Titled the "Michigan Strategic Bitcoin Reserve" and officially known as House Bill 4087, the measure completed its second reading in the state House of Representatives after a seven-month period of dormancy. Rep. Bryan Posthumus introduced the bill on February 13, 2025, aiming to allow the state treasury to classify Bitcoin as a reserve asset for strategic purposes House Bill 4087 of 2025 - Michigan Legislature [ 3 ]. Its advancement to the second reading places Michigan on a path to potentially set a new standard, as no other state currently holds a formal Bitcoin reserve House Bill 4087 of 2025 - Michigan Legislature [ 3 ].

The proposed legislation fits within a larger movement of institutional acceptance of Bitcoin. If the bill becomes law, Michigan would join the ranks of Texas, New Hampshire, and Arizona in passing similar measures—though, so far, only Texas has actually allocated funds ($10 million) for this purpose Michigan's Stalled Bitcoin Reserve Bill Advances After 7 Months [ 1 ]. Meanwhile, the U.S. House of Representatives has instructed the Treasury Department to evaluate the practicality of a federal Bitcoin reserve, with a focus on oversight, secure storage, and digital asset security Michigan's Stalled Bitcoin Reserve Bill Advances After 7 Months [ 1 ]. This push from institutions coincides with Bitcoin’s 25% rally in 2025, which saw the asset hit an all-time high of $124,500 in August Michigan's Stalled Bitcoin Reserve Bill Advances After 7 Months [ 1 ].

Analysts reviewing HB 4087 note that the bill prioritizes diversification and long-term wealth management. Still under consideration by the Government Operations Committee, the proposal seeks to commit 1% of Michigan’s financial reserves to Bitcoin, without including any other cryptocurrencies House Bill 4087 of 2025 - Michigan Legislature [ 3 ]. Supporters say that adding Bitcoin to state assets could help guard against inflation and reflect shifting financial trends, while detractors warn that the cryptocurrency’s price instability poses a risk, especially given the recent volatility in the market Michigan's Stalled Bitcoin Reserve Bill Advances After 7 Months [ 1 ].

The bill’s recent movement highlights increased governmental and financial interest in digital currencies. Over 20 states across the U.S. have proposed similar bills in 2024 and 2025, influenced by new federal stances and a changing market environment. The Trump administration has backed a federal Bitcoin reserve, and Michigan’s pension fund already has some exposure to Bitcoin through exchange-traded funds, hinting at a gradual adaptation of digital assets in state finance.

Nevertheless, even as the bill makes headway, actual implementation is still uncertain. No blockchain transactions have been made yet, and regulatory bodies have not provided feedback on the proposal House Bill 4087 of 2025 - Michigan Legislature [ 3 ]. Rep. Posthumus, who sponsors the bill, underlined its aim to "protect Michigan’s financial stability" with forward-thinking investment approaches House Bill 4087 of 2025 - Michigan Legislature [ 3 ]. However, the absence of concrete financial forecasts and risk analyses points to the necessity for more thorough examination before the bill becomes law House Bill 4087 of 2025 - Michigan Legislature [ 3 ].