By Brett Munster
And the winner is…New Hampshire?
At the start of the year, we identified government adoption of bitcoin—at both the state and federal levels—as a potentially powerful catalyst for the digital asset market this year. What might have seemed improbable to many at the time is now a reality. A recent federal executive order not only created a national strategic bitcoin reserve but also directed the U.S. Treasury to explore “budget-neutral” methods of acquiring more BTC. Now, in a watershed week for digital asset integration, New Hampshire and Arizona have become the first two U.S. states to pass legislation establishing state-level bitcoin reserves.
Lawmakers in at least 24 states have introduced legislation to authorize bitcoin as a treasury asset—a clear sign of accelerating momentum at the state level. States like Utah, North Carolina, and Texas have already advanced such bills through one legislative chamber and are awaiting final votes in the other. Yet it was New Hampshire and Arizona that became the first to cross the finish line—each forging a distinct path to make history.
Let’s start in New Hampshire, where on May 6, Governor Kelly Ayotte signed House Bill 302 (HB 302) into law, officially creating the nation’s first state-level bitcoin reserve fund. The law authorizes the state treasurer to allocate up to 5% of public funds into bitcoin and other digital assets—though the stipulation that assets must have a market capitalization over $500 billion effectively limits this to bitcoin alone for the time being. Notably, the bill includes strict custodial requirements, mandating that any holdings be kept in state-controlled multi signature wallets, through a qualified custodian, or via a U.S.-based exchange-traded product.
Then there was Arizona where its legislative route was more complex. Prior to New Hampshire’s milestone, Arizona lawmakers had already passed two complementary bills: SB 1025 and HB 2749. SB 1025 would have allowed the state to invest up to 10% of its $30 billion in public funds in bitcoin and other crypto assets. HB 2749 aimed to establish a digital asset reserve funded through unclaimed property, legal seizures, staking rewards, and airdrops.
Despite strong legislative support, SB 1025 was vetoed by Arizona Governor Katie Hobbs, who expressed concern about exposing state retirement and public funds to the volatility of crypto markets. State Senator Wendy Rogers, who co-sponsored SB 1025 with Representative Jeff Weninger, expressed disappointment following the veto, stating, “Arizona needs bitcoin,” and vowed to reintroduce the bill in the next legislative session.
The day after New Hampshire enacted its bitcoin reserve legislation, Governor Hobbs signed HB 2749—the second of two digital asset bills—into law. Her earlier veto of SB 1025 stemmed from concerns that it would allow crypto exposure in state retirement funds. In contrast, HB 2749 does not authorize the investment of public funds. Instead, it establishes a digital asset reserve funded by cryptocurrencies acquired through unclaimed property, legal seizures, and similar mechanisms. The fund can grow passively over time through staking rewards, airdrops, and other on-chain incentives, enabling Arizona to accumulate bitcoin without drawing from taxpayer dollars or public investment accounts.
Last week could mark a pivotal turning point as two states signed legislation into law to establish a strategic bitcoin reserve within 48 hours. What makes this moment even more notable is the bipartisan nature of the legislation. New Hampshire’s bill was signed by a Republican governor; Arizona’s by a Democrat. Despite differing political ideologies, both administrations recognized the strategic value of integrating bitcoin into public finance.
The next major development could come from Texas, where a bitcoin reserve bill has already passed the Senate and cleared the House Committee. With just one vote remaining before it reaches Governor Greg Abbott’s desk—who has publicly supported the initiative—Texas could soon become the most economically powerful state to back bitcoin with public assets.
If successful, Texas’s entry would bring scale. As one of the world’s top ten economies by GDP (if it were a country), Texas could allocate significantly more capital than either Arizona or New Hampshire—potentially triggering broader institutional interest in bitcoin.
If just a handful of states move forward with similar legislation, the cumulative effect could lead to tens of billions of dollars flowing into bitcoin from public treasuries. That would mark a structural shift in how governments manage reserves and hedge against macroeconomic volatility.
With a national strategic bitcoin reserve now in place and two states having officially established their own, government acquisition of bitcoin has moved from theory to reality. This isn’t a speculative idea anymore; it’s the beginning of a broader trend. The question is no longer if other states or nations will follow, but when—and at what scale.
We are witnessing the emergence of a new financial era—one where decentralized digital assets like bitcoin transition from the edges of innovation to the heart of public finance and institutional strategy.
21 Capital Mirrors Strategy to Master Bitcoin Acquisition
In a striking move that underscores the accelerating trend of institutional bitcoin accumulation, a consortium of financial powerhouses—SoftBank, Tether, Bitfinex, and Cantor Fitzgerald—has unveiled the launch of Twenty One Capital, a multi-billion dollar bitcoin acquisition company with a singular objective: to amass as much bitcoin as possible. The name is a direct nod to bitcoin’s fixed 21 million supply and in case that wasn’t on-the-nose enough, they’ll be trading on the Nasdaq under the ticker symbol XXI. Subtle? Not exactly. Bold? Definitely.
Twenty One Capital enters the market with 42,000 bitcoin already on its balance sheet, contributed by its founding partners. At current prices, the company’s bitcoin holdings are worth over $4 billion, instantly positioning it among the top three public holders of bitcoin, trailing only MicroStrategy and Marathon Digital. This early momentum speaks volumes about the scale of ambition behind the venture and the credibility of the players involved.
At the helm is Jack Mallers, a well-respected name in the bitcoin community and founder of the payment platform Strike. Mallers has made it abundantly clear that Twenty One Capital is adopting the MicroStrategy playbook: start with a sizable BTC war chest, then use the power of capital markets—debt, equity, or whatever else Wall Street is buying—to raise more funds and buy more bitcoin. In an interview with Bloomberg, Mallers said the goal is simple: “Raise as much capital as we possibly can to acquire bitcoin.”
The company is also introducing two novel metrics to evaluate performance: Bitcoin Per Share (BPS), which measures the amount of bitcoin backing each fully diluted share, and Bitcoin Return Rate (BRR), which tracks how quickly that per-share bitcoin number increases over time. This signals a fundamental shift in corporate performance philosophy—from traditional financial metrics to a laser focus on bitcoin accumulation efficiency. It’s less about quarterly profits and more about becoming the most relentless vacuum cleaner of available bitcoin on the open market.
The founding consortium brings credentials as formidable as the billions backing its balance sheet. Cantor Fitzgerald offers deep institutional access and capital markets know-how, with its CEO being the son of U.S. Commerce Secretary Howard Lutnick. Tether adds immense cash flow and technical firepower, SoftBank offers global reach and an enviable war chest, and Mallers brings energy, vision, and the kind of single-minded determination that’s become a hallmark of prominent bitcoin evangelists.
Now, let’s be clear—this is not investment advice, and no one is suggesting you should rush out and buy XXI stock, particularly given that it’s already trading at a premium that might give even die-hard bitcoin bulls pause. But regardless of what happens to its stock price, the bigger picture is hard to ignore: Twenty One Capital is yet another major accumulator stepping into the bitcoin market, creating steady demand and effectively removing supply from circulation. As bitcoin’s supply tightens, companies like MicroStrategy, Twenty One Capital, Metaplanet and others aren’t just pushing prices higher by buying—they’re doing it by never selling.
What we’re witnessing is the next chapter in corporate bitcoin adoption. MicroStrategy may have broken the ice, but now the model is being replicated and scaled. With spot ETFs drawing in passive flows and now Twenty One Capital adding aggressive, purpose-built demand, the race for bitcoin—arguably the hardest and rarest asset in the digital age—is no longer just ideological. It’s strategic, competitive, and picking up speed.
In Other News
Bitcoin ETFs flows outpace gold as investors turn to a “better hedge” against US assets.
Morgan Stanley plans to offer bitcoin and crypto trading.
Visa to launch stablecoin-linked credit cards.
Legislators of the House of Representatives introduced a bill on the structure of the US crypto market.
Ethereum activates ‘Pectra’ upgrade, raising the staking limit.
Coinbase buys Deribit in $2.9 billion deal to expand its crypto options base.
Disclaimer: This is not investment advice. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All Content is information of a general nature and does not address the circumstances of any particular individual or entity. Opinions expressed are solely my own and do not express the views or opinions of Blockforce Capital.
Disclaimer: This is not investment advice. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All Content is information of a general nature and does not address the circumstances of any particular individual or entity. Opinions expressed are solely my own and do not express the views or opinions of Blockforce Capital or Onramp Invest.
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