- According to the latest report, Florida could allocate a portion of its $185.7B pension funds or a part of its $116.5B budget surplus to Bitcoin.
- It is reported that this could be witnessed in the first quarter of 2025 (Q1 2025), especially since the speaker and the president of the Senate favor the asset class.
The US is set to make its first major move into crypto since Donald Trump’s re-election. According to the information disclosed by political strategist Samuel Armes, the state of Florida is on the verge of creating a Bitcoin (BTC) strategic reserve in the first quarter of 2025 (Q1 2025).
Florida is going to launch a strategic Bitcoin reserve, and here’s how we’re going to do it 
Florida has a very good chance of creating a strategic Bitcoin reserve this session, which starts in Q1 of 2025. Here’s what you need to know: The Speaker of the Florida House, Danny… pic.twitter.com/JJRNU1V7ZI— Samuel Armes (@samuelarmes) December 3, 2024
Highlighting some of the ways this could be implemented, Armes explained that the authorities could leverage the $185.7B pension fund by allocating a small portion to Bitcoin. According to him, this would significantly protect the funds against inflation. Mathematically, 1% of the fund would represent $1.857 billion.
To clarify this further, Armes clarified that Florida has already invested in Bitcoin and crypto-related assets via its pension funds, which are currently the fourth largest in the US.
The pension allocates its funds to hedge funds, and some of those hedge funds have bought various stocks in the Bitcoin space (miners, MSTR, Coinbase as examples) while also buying liquid tokens. Just investing ONE percent of our pension fund into Bitcoin would be $1.857 billion.
Another Option for Bitcoin Strategic Reserve
Speaking of the other alternative, Armes stated that the authorities could establish the Bitcoin strategic reserve by using their budget surplus, which is estimated to be around $116.5B. To him, this can be effectively done without cutting effective services. Investing 1% of the budget surplus would be around $1.165 billion.
In his post, the political strategist also assured that his organization would consistently push for its approvals together with other pro-Bitcoin bills.
Florida often has a budget surplus because we are kick-ass and have a very well-run state (unlike the rest of you). But inflation and time will eat away at any budget surpluses we have. Investing just ONE percent of our surplus would be $1.165 billion. My organization will be pushing this hard, along with about three other pro-Bitcoin bills this legislative session.
According to Armes, there is a good chance of approval as the Speaker of the Florida House, Danny Perez, as well as President of the Senate, Ben Albritton, played a major role in pushing their Anti-CBDC bill in Florida.
Companies Resorting to Crypto
With the recent inflation rate in the US, companies have begun to consider allocating a portion of their assets to Bitcoin. Just recently, Amazon shareholders submitted a proposal to the company to allocate at least 5% of the total assets to Bitcoin. According to them, the growing US inflation rate against the lower yield of bonds affects the overall value of assets managed by the company.
Institutional and corporate Bitcoin adoption is becoming more commonplace: more public companies such as Tesla and Block have added Bitcoin to their balance sheets, Amazon’s second and fourth largest institutional shareholders—BlackRock and Fidelity, respectively—offer their clients a Bitcoin ETF, and the US government may form a Bitcoin strategic reserve in 2025.
At press time, Bitcoin was trading at 98k after surging by 3% in the last 24 hours.
