New Mexico Could Invest Up to $2 Billion in Bitcoin Under Proposed Legislation

New Mexico is considering a groundbreaking move that could see the state invest up to $2 billion in Bitcoin. 

A newly proposed bill aims to allocate a portion of the state’s Severance Tax Permanent Fund into the world’s leading cryptocurrency, positioning New Mexico as one of the first U.S. states to make a significant Bitcoin investment at the government level.

Bitcoin as a Strategic Investment

If passed, the legislation would enable New Mexico to diversify its investment portfolio by adding Bitcoin, which has gained mainstream acceptance as a store of value and hedge against inflation. 

Proponents of the bill argue that Bitcoin’s scarcity, decentralization, and long-term growth potential make it an attractive asset for the state’s financial future.

The Severance Tax Permanent Fund, valued at over $26 billion, is traditionally invested in stocks, bonds, and other assets to generate returns for public projects. The proposed legislation suggests allocating up to 8% of the fund—roughly $2 billion—into Bitcoin, reflecting a shift toward digital assets in state-level investment strategies.

Potential Benefits And Risks

Supporters of the bill believe that investing in Bitcoin could provide high returns and protect New Mexico’s finances from inflation and economic instability. 

The state would be following in the footsteps of companies like MicroStrategy and Tesla, which have added Bitcoin to their balance sheets.

However, critics caution that Bitcoin’s price volatility could pose risks to the fund’s stability. The cryptocurrency market is known for large price swings, which could lead to significant gains or losses depending on market conditions. 

Opponents also argue that the state should prioritize investments with more predictable returns.

New Mexico Could Lead the Way in State-Level Bitcoin Adoption

If the bill is passed, New Mexico would become one of the first U.S. states to officially allocate public funds into Bitcoin, setting a precedent for other states to explore digital asset investments. 

With Bitcoin’s growing adoption among institutions and governments worldwide, this move could position New Mexico as a leader in state-backed cryptocurrency investment strategies.Also read: North Carolina Introduces Bill to Create a Strategic Bitcoin Reserve.