Two major developments in the US crypto and digital asset landscape this week reflect the growing intersection of traditional finance, state policy, and emerging technologies. In West Virginia, lawmakers are advancing a Bitcoin strategic reserve bill aimed at increasing financial sovereignty and hedging against the potential rollout of a central bank digital currency (CBDC). Meanwhile, Bitcoin mining firm Bitfarms has secured a $300 million loan from Macquarie Group to finance the development of its high-performance computing (HPC) data centers, signaling a broader industry shift toward AI infrastructure and diversified revenue streams amid post-halving pressures.
West Virginia’s Bold Bitcoin Strategic Reserve Bill Aims to Secure Financial Sovereignty and Hedge Against CBDC Future
West Virginia is positioning itself at the forefront of a growing movement in the United States to bring Bitcoin into the financial arsenal of state governments. In a recent interview, State Senator Chris Rose emphasized that the state’s newly proposed Bitcoin Strategic Reserve Bill is not merely an investment strategy but a proactive step toward financial sovereignty and resistance to what he calls a creeping centralization of money in the form of a potential US central bank digital currency (CBDC).
Excerpt of West Virginia Bitcoin reserve bill (Source: West Virginia Legislature)
Senator Rose, a Republican representing West Virginia’s 13th District, explained that the bill was crafted with the explicit intent of protecting the financial autonomy of the state and its citizens.
“You hear these rumors that there are people at the federal government that will want to have a central bank digital currency,” Rose said. “And people don’t want that. People want decentralized currency. They want freedom.”
The proposed legislation, introduced earlier this year in February, would allow the West Virginia state treasury to allocate up to 10% of its long-term public funds into a combination of precious metals like gold and silver, stablecoins, and digital assets. However, there’s a significant qualifier: any digital asset selected must have maintained a market capitalization of at least $750 million over the preceding 12 months. By these metrics, the only digital asset currently eligible is Bitcoin (BTC).
The market capitalization filter is an intentional move by Senator Rose to avoid exposing state funds to riskier crypto assets or “meme coins,” which are infamous for their speculative price swings and lack of underlying utility.
Rose added that Bitcoin adoption at the state level would grant West Virginia greater financial independence and “a little more state sovereignty.”
Risk and Reward: Balancing Public Funds Exposure
The bill proposes that the 10% allocation would be drawn from two key financial pillars of the state:
The pensions fund
The severance tax fund
These funds are responsible for long-term financial commitments, making them more suitable for holding non-liquid, potentially volatile assets like Bitcoin. The bill deliberately excludes West Virginia’s petty cash fund, which manages daily operational expenses.
Rose further explained that the 10% cap was selected to introduce Bitcoin to the state’s balance sheet without triggering fear among those unfamiliar with digital assets. “It’s a good way to cap that where they feel comfortable, but also give us at least a decent exposure as well,” he added.
According to Rose, the bill has garnered positive feedback from key figures within the state government, including Governor Patrick Morrisey. The Governor, known for his pro-technology and crypto-forward policies, has envisioned a future economy in West Virginia powered in part by blockchain innovations. Rose also confirmed he consulted the state treasurer prior to introducing the bill to ensure institutional alignment.
However, not everyone is convinced. Some lawmakers and financial experts, including those cited by WVNews, have raised concerns over Bitcoin’s high volatility and historical price swings. Critics argue that while Bitcoin may serve as a long-term hedge against inflation and centralized financial control, its unpredictable short-term movements could put public funds at risk.
West Virginia is not alone in this legislative experiment. According to Bitcoin Laws, 47 strategic Bitcoin reserve bills have been introduced in 26 US states. However, the majority have either stalled in committees or had key provisions stripped. Only three states—Arizona, Oklahoma, and Texas—have seen meaningful progress in moving these bills forward.
Bitcoin: An Investment and a Political Statement
For Senator Rose and his supporters, however, the bill is about more than just a portfolio diversification strategy—it’s a political message against federal overreach and centralized control.
The bill’s progress could serve as a bellwether for how far US states are willing to go to integrate decentralized digital assets into public finance systems and challenge the increasing conversation surrounding a potential Federal Reserve-backed CBDC.
As debate continues within the legislature, the outcome of West Virginia’s Bitcoin Strategic Reserve Bill could set an important precedent—not just for crypto adoption, but for the balance of financial power between state and federal governments in the digital age.
Bitfarms Secures $300 Million Loan from Macquarie to Develop High-Performance Computing Data Centers
In other news, leading Bitcoin mining company Bitfarms has secured a significant financial lifeline as it continues its strategic pivot toward high-performance computing (HPC) and artificial intelligence (AI) infrastructure. On April 2, Bitfarms announced it has entered into a $300 million loan agreement with global financial services giant Macquarie Group, a move designed to fund the development of its ambitious Panther Creek HPC data center project in Pennsylvania.
The deal sheds light on the shifting dynamics of the Bitcoin mining industry as major players like Bitfarms look to diversify revenue streams amid the rapidly changing crypto market landscape and the exponential demand for AI computing capacity.
Under the agreement, Macquarie’s private debt facility will provide an initial $50 million in funding to jumpstart the Panther Creek project. The remaining $250 million will be released in stages as Bitfarms hits predetermined development milestones at the site.
According to Bitfarms’ announcement, the Panther Creek facility will ultimately boast nearly 500 megawatts of capacity, powered by a diversified energy mix. The company believes the project will attract a wave of interest from HPC tenants, including AI firms and cloud computing clients, once construction is fully underway.
Bitfarms’ expansion into the HPC and AI sectors is part of a broader trend within the Bitcoin mining industry, as companies grapple with tighter profit margins in the wake of the April 2024 Bitcoin halving event. The reduction in Bitcoin block rewards has forced miners to search for alternative, more stable revenue streams.
The surge in AI-driven data processing needs has presented a unique opportunity. GPU infrastructure originally intended for crypto mining is now being retooled for AI and HPC workloads, which offer significantly higher profit margins. According to Hive Digital executives, AI applications can generate upwards of $2.00 per hour per machine, compared to a mere $0.12 per hour from traditional Bitcoin mining.
While the Panther Creek project offers long-term upside, Bitfarms acknowledged in its latest quarterly report that it faces regulatory hurdles in expanding its energy infrastructure. The company noted that the timeline to receive the necessary approvals could range anywhere from 12 to 36 months, potentially delaying full operational capacity.
To address short-term capacity concerns, Bitfarms is banking on its recent $125 million acquisition of Stronghold Digital Mining, which is expected to significantly bolster its operational power base while Panther Creek remains under development.
Additionally, the company has recently sold its Paraguay site to Hive Digital for $85 million, signaling a broader strategic shift to consolidate operations in the United States and Canada while refocusing on HPC and AI opportunities.
HODLing Bitcoin as a Hedge
Despite its diversification strategy, Bitfarms remains firmly committed to Bitcoin as a long-term investment. The company reported mining 654 BTC in Q4 2024 at an average all-in cash cost of $60,800 per Bitcoin. Rather than liquidating its entire output, Bitfarms has opted to hold a significant portion of its mined Bitcoin, a practice known as HODLing within the crypto community.
Currently, Bitfarms holds 1,152 BTC, making it one of the top 25 publicly traded Bitcoin-holding companies in the world. Other major miners have adopted similar strategies. Hive Digital has increased its Bitcoin holdings to 2,620 BTC, while MARA Holdings has amassed an industry-leading 46,374 BTC and announced plans for a $2 billion stock offering to further expand its Bitcoin reserves.
Bitfarms is not alone in its move toward HPC and AI. Industry peers such as Core Scientific, Hut8, Hive Digital, and Bit Digital have all begun to pivot portions of their operations away from pure Bitcoin mining toward AI-focused services.
Hive Digital, for example, has reallocated part of its fleet of Nvidia GPUs—originally purchased for crypto mining—toward running AI applications and data-intensive workloads.
The shift is widely seen as a defensive play in the face of shrinking Bitcoin mining rewards, increased energy costs, and growing regulatory scrutiny across global markets.
