Alabama State Auditor Andrew Sorrell has proposed creating a strategic Bitcoin reserve to future-proof the state’s economy, attract digital asset investments, and establish itself as a pioneer in crypto adoption.
The proposal follows a 50% surge in Bitcoin’s value since the presidential election and President-elect Donald Trump’s endorsement of the cryptocurrency, which includes a campaign pledge to build a federal Bitcoin reserve. Sorrell believes adding Bitcoin to Alabama’s holdings would position the state for long-term gains by diversifying its assets and attracting crypto-focused businesses.
Sorrell emphasized that investing in Bitcoin is not about short-term gains but preparing for the future and building a financial safety net. He suggested a gradual approach, using dollar-cost-averaging strategy over two years to reduce risks associated with market volatility.
This move aligns with growing interest among US states in leveraging crypto for economic stability, as Florida and Pennsylvania explore similar strategies, and federal lawmakers introduce legislation to establish a national Bitcoin reserve. The Securities and Exchange Commission’s approval of Bitcoin ETFs earlier this year has made it easier for states to invest in digital assets.
Sorrell believes Alabama can attract businesses and investors by positioning itself as a crypto-friendly state, stating “States that adapt to emerging technologies will be the ones to thrive.” He sees Trump’s administration plans to retain and expand the federal Bitcoin stockpile as a precedent for Alabama’s potential reserve.
Source: https://cryptoslate.com/alabama-state-auditor-calls-to-establish-bitcoin-reserve