Florida Plans Strategic Bitcoin Reserve Using $1.85B from Pension Fund

The state of Florida plans to introduce a strategic Bitcoin reserve in the first quarter of 2025, according to The Street. This initiative, backed by Florida's influential political leaders and blockchain advocates, signals the state's ongoing push to become a leader in Bitcoin adoption. 

Florida’s Bold Move: A Bitcoin Reserve

Samuel Armes, president of the Florida Blockchain Business Association (FBBA), revealed that the state is likely to establish a strategic Bitcoin reserve during the upcoming legislative session starting in the first quarter of 2025. The move builds on Florida’s existing investments in Bitcoin and crypto-related assets, particularly through its $185.7 billion pension fund, which is the fourth largest in the United States.

Armes proposes dedicating 1% of this pension fund—about $1.857 billion—towards the Bitcoin reserve. This would reportedly provide the state with both financial diversification and increased exposure to the fast-evolving cryptocurrency sector. 

Additionally, Armes noted the state's projected budget surplus of $116.5 billion for fiscal year 2024-2025, suggesting even a modest 1% allocation-approximately $1.16 billion-could be used to invest in Bitcoin.

Top Leaders Embraces Bitcoin

Florida’s pro-Bitcoin leadership, including Governor Ron DeSantis, has been crucial in driving the state's crypto ambitions. DeSantis, known for his opposition to central bank digital currencies (CBDCs), has championed financial freedom and the right to use cryptocurrencies like Bitcoin. In May 2023, during a conversation with Elon Musk, DeSantis stressed the importance of protecting Bitcoin’s role in financial autonomy.

The political backing extends to the state legislature, where figures like Florida House Speaker Danny Perez and Senate President Ben Albritton have actively supported Bitcoin-related legislation, including bills that protect Florida from the potential negative impacts of CBDCs. 

Florida’s initiative to use Bitcoin as a reserve asset aligns with the vision of state leaders like Senator Cynthia Lummis of Wyoming, who has praised Florida’s plan as part of a broader “race to the top” for Bitcoin adoption. 

Florida’s Bitcoin Investments So Far

Florida has already made significant moves in the crypto space. As of recent reports, the state holds around $800 million in crypto-related investments. 

Chief Financial Officer Jimmy Patronis has been vocal about the need for the state to prepare for the future of cryptocurrency. Patronis recently called for state pension fund managers to explore the feasibility of adding Bitcoin to the state’s investment portfolio.

Patronis has argued that the growth of cryptocurrency is unstoppable. He told CNBC in October:

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

The updates follow US President-elect Donald Trump's commitment to Bitcoin and digital asset innovation, including plans to continue the U.S. government's Bitcoin holdings.

In July 2024, Trump pledged during the Bitcoin2024 conference that his administration would never sell the U.S. government's Bitcoin holdings, which currently exceed 212,000 BTC, valued at around $20 billion.