New Hampshire Becomes First State to Establish Bitcoin Reserve

New Hampshire is now officially on track to establish a Bitcoin reserve after Governor Kelly Ayotte signed bill HB 302 into law on Tuesday.

"New Hampshire is once again first in the nation!" Ayotte shared on X. "Just signed a new law allowing our state to invest in cryptocurrency and precious metals."

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Introduced in January, the bill authorizes the New Hampshire state treasurer to invest up to 5% of public funds in precious metals like gold or silver, or digital assets with a market cap averaging at least $500 billion in the previous year. Based on these criteria, Bitcoin is the only digital asset eligible for inclusion.

"If the federal government managed the dollar better, we wouldn't need to be considering these things. But inflation is eating our lunch," said Representative Keith Ammon, the bill’s sponsor, in an interview with Decrypt. "And this is one little way our state could hedge against inflation in the future."

At the end of 2024, New Hampshire’s treasury held just over $3.62 billion, according to the state’s unaudited annual report. If the treasurer decides to invest the full 5%, around $181 million, in Bitcoin, this would provide exposure to approximately 1,194 BTC at the current price.

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The bill specifies that Bitcoin exposure can be managed directly by the treasury through a secure custody solution, by a qualified custodian on behalf of the state, or via an exchange-traded product issued by a regulated investment company. Initially, however, the state is likely to use a Bitcoin ETF.

“It would probably be like a Fidelity ETF that they would hold,” Ammon explained regarding the state treasurer’s approach. “I don't know if they're comfortable with self-custody at this point.”

New Hampshire is the first state to pass such a law, though other states have been pushing legislation for Bitcoin or cryptocurrency reserves. Some states, like Arizona, have seen setbacks, with Governor Katie Hobbs recently vetoing a bill that reached her desk.

Meanwhile, President Trump signed an executive order in March to establish a national strategic Bitcoin reserve for the United States, along with a separate digital assets stockpile for other cryptocurrencies.