michigan bitcoin investment bill explained what you should know

The Michigan House of Representatives has introduced Bill 4087, which proposes investing up to 10% of the state’s General and Economic Stabilization Funds into cryptocurrencies.

The bill also includes an option for lending digital assets, allowing for additional revenue without increasing financial risk.

Brian Posthumus, one of the bill’s sponsors, stated that Michigan aims to become a leader in crypto policy by establishing a Strategic Bitcoin Reserve (SBR).

Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve. https://t.co/x2Yke3uWTn
— Rep. Bryan Posthumus (@posthumus_bryan) February 13, 2025

Michigan has joined 20 other states considering similar initiatives.

According to VanEck, if such bills are passed, they could generate an additional demand of 242,787 BTC ($23.5 billion). This estimate is conservative, as it does not factor in potential investments from pension funds.

In January 2024, Donald Trump announced the formation of a Task Force on Digital Assets, led by David Sacks, his special advisor on AI and cryptocurrencies. One of the group’s key objectives is to assess the feasibility of SBR adoption.

MARA Holdings, the largest publicly traded Bitcoin miner, has joined efforts to lobby for Bitcoin reserves at the federal level and across all 50 U.S. states.

Dennis Porter, CEO of Satoshi Action Fund, believes that Utah could become the first state to approve an SBR bill.

In December 2023, VanEck estimated that the introduction of SBR could help reduce U.S. national debt by 35% by 2050. Their forecast suggests that by 2049, Bitcoin could reach $42.3 million, with a 25% compound annual growth rate (CAGR).

Michael Saylor, founder of MicroStrategy, has projected that SBR could generate $81 trillion in benefits for the U.S. economy.

Notably, Sygnum calculated that a $1 billion Bitcoin purchase for a national reserve could increase the asset’s market capitalization by $20 billion.

Previously, analyst Thomas Farrer predicted that once the U.S. government confirms the creation of an SBR, Bitcoin’s price could surge by $50,000 within a minute.