Arizona Lawmakers Revive Bill To Create a Bitcoin Reserve

A Republican-led bill to set up a sovereign Bitcoin BTC/USD reserve has been given new life in the state of Arizona.

After the measure failed in Arizona's House on May 7, the state's Senate voted Thursday to revive it by a 16-14 margin, largely along party lines. If the bill is passed, it would create a "Bitcoin and Digital Assets Reserve Fund" to manage forfeited digital assets and establish guidelines for how they are managed.

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The bill would grant Arizona's Attorney General $300,000 and divide the surplus funds between state financial bodies, including the AG’s office, the general fund, and a specialized digital asset reserve fund.

The measure goes back to the House and has to garner a majority approval to reach Governor Katie Hobbs’ desk. Governor Hobbs’s response to such bills has remained divided. She had earlier opposed SB 1025, which entailed investment into digital assets, and had supported HB 2749, which talked about Bitcoin reserves free from taxpayer backing.

Bitcoin traded at $104,489.16 on Friday, down 0.40% within 24 hours.

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Prenetics Global Ltd PRE shares are up 10% following a recent investment in Bitcoin. The healthtech firm bought 187 BTC tokens. The acquisition, worth $20 million, is part of the firm’s treasury plan initiated by CEO, Danny Yeung. Board member Andy Cheung said the firm is aiming to move beyond passive holding and manage Bitcoin holdings through advanced techniques.

The market reaction highlights a robust investor enthusiasm for the integration of Bitcoin as a corporate reserve asset.
VanEck's head of digital assets research, Matthew Sigel, has sounded an alarm regarding BTC-centered treasury models. Popularized by MicroStrategy Incorporated MSTR, such models can potentially dilute shareholder value if stock prices are near the NAV.

Sigel recommended that firms suspend share sales below 0.95 NAV and activate buybacks to bring share price stability. His comment fuels the ongoing dialogue around the risks tied to Bitcoin-heavy corporate reserves.

Trading and Technicals

Investor sentiment remains uncertain. Bitcoin's Relative Strength Index (RSI) reads at 47, offering no upward or downward movement. The Average Directional Index is currently at 15, indicating very little momentum.

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