New Hampshire has become the first U.S. state to allow the investment of its public funds into cryptocurrencies such as Bitcoin (BTC).
New Hampshire Governor Kelly Ayotte, a Republican who’s in her first year in office, signed a law on May 6 allowing the northeastern state to create a strategic crypto reserve. The New Hampshire legislation allows the investment of up to 5% of public funds into a digital asset that has at least $500 billion in market capitalization. That requirement currently leaves Bitcoin as the only qualifying cryptocurrency.
New Hampshire beat several other states that are considering investing a portion of their funds into crypto, which also includes Ethereum (ETH), XRP (XRP), and Solana (SOL). As the first government at any level to authorize its treasurer to set up a crypto reserve, New Hampshire could also beat the U.S. federal government to forming a Bitcoin stockpile, something President Donald Trump has promised.
Risky Move?
State Republicans in New Hampshire boasted on social media that New Hampshire is “OFFICIALLY the first state to lay the groundwork for a strategic Bitcoin reserve.” While several other U.S. states have considered strategic crypto reserves, they have all rejected the idea as too risky for public money.
Arizona’s governor recently vetoed crypto reserve legislation that passed in the State House, saying digital assets are too risky and could put public pensions in jeopardy. Florida has also rejected the creation of a crypto reserve despite intense lobbying in the state. President Trump has called for his administration to set up a strategic Bitcoin reserve, something the U.S. Treasury Department is examining.
Bitcoin is currently trading near $97,000.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 2.42% in the last 12 weeks.
