New Hampshire Becomes First To Approve Public Fund Investments in BTC

New Hampshire Leads the Nation in Digital Asset Investment

New Hampshire Governor signed House Bill 302 into law on May 6th, making it the first US state to permit state-level investment in digital assets and precious metals. The Governor announced the landmark achievement on X, stating that New Hampshire is "once again first in the nation."

HB 302 allows the New Hampshire State Treasurer to invest up to 5% of public funds in assets including precious metals (such as gold and silver) and cryptocurrencies with a minimum market capitalization of $500 billion (based on the previous calendar year). Currently, Bitcoin is the only cryptocurrency meeting this criterion.

State Representative Keith Ammon cited concerns about the federal government's management of the dollar as a key driver behind the bill, suggesting it's a strategy to hedge against future inflation. With over $3.62 billion in the state treasury at the end of 2023 (unaudited), a 5% allocation would represent approximately $181 million, potentially allowing for the acquisition of 1,194 BTC at current prices.

The bill outlines several pathways for Bitcoin acquisition, including direct purchase via a secure custody solution, through a qualified custodian acting on behalf of the state, or via exchange-traded products from regulated investment firms. This initiative marks a significant step forward for digital asset adoption at the state level, as many other US states continue to grapple with similar legislation.