Nikolas Sargeant
In a pivotal move toward cryptocurrency adoption, Montana's House Business and Labor Committee has approved legislation that would enable the state to hold Bitcoin as a reserve asset, marking a significant milestone in the state's financial evolution. The groundbreaking House Bill No. 429 secured passage with a 12-8 vote along party lines, with Republican members unanimously supporting the measure.
Proposed Investment Framework Targets High-Value Digital Assets
The legislation establishes a specialized revenue account focused on investments in digital assets maintaining a market capitalization above $750 billion over a 12-month period, effectively limiting current eligibility to Bitcoin, which trades at approximately $97,112. Following recent amendments that removed custodial requirements, the bill authorizes Montana's state treasurer to allocate up to $50 million into the new account by mid-July, should the legislation receive final approval.
Growing Momentum for State-Level Cryptocurrency Adoption
Montana joins a expanding coalition of states exploring cryptocurrency reserves, with Utah leading the charge as the only state to successfully pass similar legislation through its House. The movement gained additional momentum following former President Donald Trump's January initiative to investigate federal digital asset reserves, spurring numerous state-level proposals across Illinois, Kentucky, Maryland, and others.
Strategy Announces Major Bitcoin Investment Initiative
Complementing these legislative developments, Strategy (formerly MicroStrategy) has unveiled plans to raise $2 billion through zero-interest convertible notes, primarily targeting Bitcoin acquisitions. The company's prominence in state-level investments is evidenced by approximately $330 million in collective holdings from various state pension funds and treasuries, with California's State Teachers Retirement System maintaining the largest position of 285,785 shares, valued at roughly $83 million according to recent SEC filings.
