Bitcoin Reserve on Horizon as Florida Leverages $185 Billion Pension Fund

Florida is positioning itself to become a trailblazer among U.S. states by creating a strategic Bitcoin reserve. Samuel Armes, president of the Florida Blockchain Business Association (FBBA), recently announced the state’s ambitions on the social media platform X. He highlighted the support from pro-Bitcoin leaders, emphasizing the likelihood of this initiative moving forward during Florida’s legislative session in early 2025.

Leveraging State Funds for Bitcoin Investments

Armes suggested that Florida could tap into its $185.7 billion pension fund, the fourth-largest in the nation, to establish the reserve. He proposed allocating just 1% of the fund to Bitcoin, which would amount to $1.857 billion. Here’s what he said, “Florida has a very good chance of creating a strategic Bitcoin reserve this session, which starts in Q1 of 2025. [We can] leverage our $185.7 billion pension fund (4th largest in the U.S.) to allocate a small percentage to Bitcoin as a hedge against inflation…Just investing ONE percent of our pension fund into Bitcoin would be $1.857 billion.”

He also noted that the state could use its budget surplus for crypto investments without compromising essential services. By allocating a mere 1% of the surplus, Florida could invest an additional $1.165 billion in Bitcoin.

“Inflation and time will eat away at any budget surpluses we have,” Armes warned, advocating for strategic investment to counteract these economic challenges.

Florida’s Chief Financial Officer (CFO), Jimmy Patronis, recently underscored the state’s proactive stance on cryptocurrency. He revealed that Florida’s government already holds $800 million in crypto-related investments and sees the potential for further expansion.

“Crypto’s not going anywhere. It’s not going to contract. It’s going to continue to be expanding,” Patronis stated. “I think we’d be a fool if we’re not prepared to do everything we can to harness the opportunities there.”