North Carolina Proposes Allocating 10% of Public Funds to Bitcoin

Highlights:

• North Carolina’s Senate Bill 327 proposes investing up to 10% of public funds in Bitcoin.
• Bitcoin holdings will be stored securely with multi-signature authentication and undergo monthly audits.
• The state aims to become a leader in cryptocurrency adoption through strategic Bitcoin reserve investments.

North Carolina has entered the race of states establishing a Bitcoin reserve. On March 18, Senators Brad Overcash, Todd Johnson, and Timothy Moffitt introduced Senate Bill 327 (SB327), the “NC Bitcoin Reserve and Investment Act,” which proposes allocating up to 10% of public funds into Bitcoin as part of the state’s long-term financial strategy.

According to Bitcoin Laws, North Carolina's Bitcoin Reserve Bill SB327 authorizes the State Treasurer to allocate up to 10% of public funds to Bitcoin. North Carolina currently has a general fund of $9.5 billion. North Carolina currently has two Bitcoin reserve bills awaiting…

— Wu Blockchain (@WuBlockchain) March 19, 2025

The proposed legislation mandates that Bitcoin holdings be stored in cold storage wallets with multi-signature authentication and undergo monthly audits. The state treasurer would be responsible for making purchases through regulated US-based crypto exchanges. The bill also permits the exploration of Bitcoin mining operations to enhance the state’s holdings at minimal cost.

The bill also imposes strict rules for Bitcoin reserve. It requires two-thirds approval from both chambers of the General Assembly to sell any Bitcoin. The reserve can address financial crises, fund infrastructure, support Bitcoin-related research and education, and back bonds for public projects. Additionally, it mandates the creation of a Bitcoin Economic Advisory Board to provide ongoing guidance on managing the reserve.

The legislation aims to make North Carolina a leader in state-level cryptocurrency adoption and promote Bitcoin investment.

The bill reads:

“The purpose of this act is to establish a strategic Bitcoin reserve for the State of North Carolina, promote Bitcoin investment as a financial innovation strategy, and position North Carolina as a leader in state-level cryptocurrency adoption.”

NC’s Bitcoin Reserve Could Reach $950 Million

The legislation does not define the exact size of the public funds pool. According to data from the Office of the State Controller, North Carolina valued its general fund at $9.5 billion as of March 14. Applying the bill’s 10% cap would allocate $950 million.

The Office of State Budget and Management (OSBM) projects General Fund revenues at $34.7 billion for FY 2024-25. The $9.5 billion figure likely represents the portion available for the proposed investment under the bill. If the funds change, the 10% allocation will adjust accordingly.

North Carolina Introduces Second Bitcoin Reserve Bill Amid National Momentum

SB327 is North Carolina’s second Bitcoin reserve bill. In the previous month, lawmakers introduced the “NC Digital Assets Investments Act” (HB92). This bill allows the State Treasurer to invest up to 10% of state funds in digital assets. The assets must have a minimum average market capitalization of $750 billion. HB92 passed its first reading on February 12 and the Committee on Pensions and Retirement referred it for further review earlier this month.

As of March 19, lawmakers have proposed 39 State Bitcoin Reserves across 23 states. Most of these proposals emerged after Donald Trump’s return as president on January 20. The White House refers to Bitcoin as ‘Digital Gold,’ highlighting its fixed supply. This makes it advantageous for countries to establish State Bitcoin Reserves early and use BTC as a valuable asset in the global financial system.