Michigan Lawmakers Push Groundbreaking Bill to Diversify State Treasury with Bitcoin Investments

BREAKING: Michigan takes bold leap into digital asset allocation as lawmakers advance unprecedented state Bitcoin fund legislation.

The Crypto Frontier

Michigan's political machinery just greenlit a revolutionary proposal that would allocate portions of the state's treasury directly into Bitcoin—bypassing traditional asset classes and potentially rewriting public fund management playbooks. The bill cuts through conventional investment strategies, positioning Michigan at the forefront of state-level crypto adoption.

Treasury Transformation

Lawmakers champion the move as fiscal foresight—hedging against dollar devaluation while tapping into Bitcoin's store-of-value proposition. The legislation mandates phased Bitcoin acquisitions, treating the cryptocurrency as a strategic reserve asset rather than speculative gamble. Because nothing says 'responsible stewardship' like betting public funds on volatile digital assets that could moon or crater before next quarter's budget meeting.

The legislation now moves to committee review, potentially setting a precedent that could see other states following Michigan's dive into the crypto deep end—whether they're ready to swim or not.

Michigan Joins Growing List of States Pursuing Bitcoin Reserve Strategy

The move positions Michigan alongside a growing list of states eyeing bitcoin as a hedge and strategic reserve asset, joining early movers like Texas, New Hampshire, and Arizona.

The timing may be notable. With Bitcoin trading around $117,000, critics have warned that Michigan could be buying at a market peak.

If passed, Michigan’s MOVE could accelerate regional pressure. States like Illinois, Ohio, and Pennsylvania, once exploring their own digital asset reserves, may feel compelled to revive their efforts to avoid falling behind.

More than 25 U.S. states are actively reviewing similar proposals, according to BitcoinLaws.io. In early August, the US House advanced a federal bill that directs the Treasury Department to study the feasibility of a national Bitcoin reserve, focusing on custody, cybersecurity, and accounting standards.

International momentum is building as well. The Philippines recently introduced a bill to establish a strategic Bitcoin reserve with a 20-year lockup period.

JUST IN: Michigan Strategic Bitcoin Reserve bill has progressed for the first time since February.

It WOULD allow 10% of state funds to be invested in Bitcoin. pic.twitter.com/Akdhyj9Ggx

Meanwhile, El Salvador, the first country to adopt Bitcoin as legal tender, is reportedly adding Gold to its national reserves.

Pakistan has also taken a major policy turn with its plans to establish a government-led Strategic Bitcoin Reserve, announced in May 2025 by Bilal Bin Saqib, head of the Pakistan crypto Council.

The reserve is intended to be held indefinitely, not for speculation, and forms part of a broader push to build crypto regulation, harness surplus energy, and attract investment in digital infrastructure.

The government has pledged 2,000 megawatts of electricity toward Bitcoin mining and AI data centers, and it is setting up a dedicated regulatory authority (PVARA) to oversee digital asset activity.

One in Four Bitcoin Treasury Firms Now Trade Below Their BTC Holdings

A report by K33 Research reveals that 25% of public companies holding Bitcoin now trade at market values lower than their actual BTC reserves, highlighting a growing disconnect between corporate treasuries and investor confidence.

Smaller firms like NAKA, Semler Scientific, and Twenty One are trading well below net asset value (NAV), raising concerns about dilution and limited capital-raising ability.

K33’s Vetle Lunde warns that trading below NAV hampers funding, as issuing new shares becomes increasingly dilutive.

While giants like MicroStrategy still trade at a premium, average NAV multiples have dropped from 3.76 in April to 2.8, and BTC accumulation by treasury firms is slowing, with September seeing the lowest daily inflows since May.

Despite treasury demand cooling, spot ETFs and retail investors are stepping in as the new demand engines.