Source: Omkar Godbole
After seven months of inactivity, Michigan's Bitcoin Reserve Bill, HB 4087, made progress Thursday by advancing to the second reading in the state House of Representatives.
The bill, introduced in February, aims to establish a strategic bitcoin (BTC) reserve by authorizing the state treasury to invest up to 10% of its reserves in the largest cryptocurrency and possibly others. It has now been referred to the Committee on Government Operations.
If approved, Michigan would join the three states — Texas, New Hampshire and Arizona — that have enacted bitcoin reserve laws. While Texas allocated $10 million to purchase BTC in June, the other two have yet to fund the reserve with state money.
Recently, the U.S. House directed the Treasury Department to study the feasibility and governance of a strategic bitcoin reserve, including key areas such as custody, cybersecurity and accounting standards.
Sovereign adoption of bitcoin has emerged as one of the defining trends of 2025, with several U.S. states and countries considering or implementing BTC reserves as part of their public finance strategy. That's in addition to the growing corporate adoption of bitcoin in company treasuries.
This institutional embrace has contributed to a significant boost in bitcoin’s market valuation. The BTC price has increased 25% this year, and touched a record high near $124,500 in August, CoinDesk data show.
Despite the enthusiasm, skeptics remain concerned about the risks posed by bitcoin’s notorious price volatility.
