Montana’s House Business and Labor Committee has advanced legislation that could make the state one of the first in the U.S. to hold Bitcoin and other digital assets as reserve assets. House Bill No. 429, which passed on February 19 with a 12-8 vote, saw full Republican support, while Democrats unanimously opposed it.
The bill seeks to establish a state special revenue account for investments in high-capitalization digital assets, precious metals, and stablecoins. If enacted, it would allow the Montana State Treasurer to allocate up to $50 million into this account by July 15, potentially diversifying the state’s reserves with Bitcoin and other eligible assets.
Bitcoin Reserve Proposal Gains Traction
House Bill No. 429 proposes that the new revenue account hold digital assets with an average market capitalization exceeding $750 billion over the past year. As of now, Bitcoin is the only cryptocurrency meeting that threshold, with a price hovering around $97,112.
The bill initially included a requirement for funds to be held by a qualified custodian or through an exchange-traded fund (ETF), but that provision was removed through an amendment. With this change, Montana’s approach differs from other states considering similar measures.
Montana joins a growing list of states exploring Bitcoin reserves. Utah, Arizona, and Oklahoma have introduced legislation at similar stages, but only Utah has successfully passed a Bitcoin reserve bill through its House. Meanwhile, a dozen other states, including Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas, have proposed comparable measures.
West Virginia recently entered the conversation, with State Senator Chris Rose introducing the Inflation Protection Act of 2025. If passed, the bill would permit the state treasury to allocate funds into digital assets and precious metals as a hedge against inflation.
Broader Bitcoin Reserve Movement and Industry Influence
Momentum for state-level Bitcoin adoption has gained traction in part due to federal developments. On January 23, U.S. President Donald Trump commissioned a working group to assess the feasibility of a federal digital asset reserve, fueling legislative interest at the state level.
Proponents of Bitcoin reserves argue that allocating state funds into digital assets offers protection against inflation and diversifies state investments. Dennis Porter, CEO of the Satoshi Action Fund, emphasized that Utah is leading the way. “Utah could become the first state to formally adopt Bitcoin reserves, given its expedited legislative calendar and strong political backing,” he noted.
The bill’s passage through committee drew attention on social media. The Satoshi Action Fund posted, “BREAKING: ‘Strategic Bitcoin Reserve’ legislation in Montana passes out of committee and moves onto a House floor vote – Thank you to the leadership of Rep. Schomer who sponsored the bill.” The account also posted the actual bill shown below.
Beyond government reserves, the private sector continues to expand its Bitcoin holdings. Strategy, the business intelligence firm formerly known as MicroStrategy, announced plans to raise $2 billion through 0% senior convertible notes to purchase additional Bitcoin. The company already holds billions in Bitcoin, with state pension funds and treasuries investing in its stock. California’s State Teachers Retirement System fund, for example, holds 285,785 shares valued at approximately $83 million, according to a Feb. 14 SEC filing.
Montana’s Bitcoin reserve bill now moves to the House floor for further debate and voting. If approved, the legislation will take effect on July 1, positioning Montana as a potential leader in state-backed digital asset investment.
