Michigan Bitcoin Reserve Bill Advances After 7-Month Delay - Strategic BTC Investment Proposal

After seven months of legislative inactivity, Michigan's Bitcoin Reserve Bill (HB 4087) has gained significant momentum by advancing to its second reading in the state House of Representatives. The proposed legislation, initially introduced in February 2025, would authorize the state treasury to allocate up to 10% of Michigan's reserves into bitcoin (BTC) and potentially other cryptocurrencies, establishing a strategic digital asset reserve. The bill has now been referred to the Committee on Government Operations for further review. If successfully enacted, Michigan would become the fourth U.S. state to implement bitcoin reserve legislation, joining Texas, New Hampshire, and Arizona. While Texas has already committed $10 million to BTC purchases in June 2025, the other two states have yet to fund their reserves with state capital. This development coincides with growing institutional bitcoin adoption across multiple sectors. The U.S. House recently directed the Treasury Department to conduct a comprehensive study on establishing a federal strategic bitcoin reserve, examining critical aspects including custody solutions, cybersecurity protocols, and accounting standards. Sovereign bitcoin adoption has emerged as a defining financial trend in 2025, with numerous U.S. states and national governments considering or implementing BTC reserves as part of their public finance strategies. This institutional embrace has contributed significantly to bitcoin's market performance, with BTC prices increasing 25% year-to-date and reaching record highs near $124,500 in August 2025, according to CoinDesk data. Despite growing institutional acceptance, some financial experts remain cautious about bitcoin's notorious price volatility and its potential impact on public finances.