Montana lawmakers have rejected House Bill 429 during the House floor session. The bill would have allowed the state to hold Bitcoin (BTC) as a state asset.

This comes after the bill advanced through the Business and Labor Committee with a 12-8 vote last week.

Montana Strategic Bitcoin Reserve Bill Rejected

House Bill 429 also included provisions for investing in precious metals and stablecoins. Meanwhile, Bitcoin was the only digital asset that met the $750 billion market cap requirement.

Representative Curtis Schomer called it “a precious bill for the treasury state.” He emphasized the need to diversify state reserves amid concerns over inflation and federal political shifts.

“The dollar is not as strong as we think, and we should not be putting all of our eggs in one basket,” he said.

Schomer highlighted precious metals as a historical hedge against economic uncertainty and digital assets as a modern investment with long-term growth potential. He stressed that digital assets have the potential for exponential returns.

“Montana will have more control over its economic development and not be susceptible to federal political turmoil,” Schomer added.

He also noted that the bill move would help drive the state’s economic growth.

Nonetheless, the bill was rejected in a 41-59 vote. The proposal faced a largely partisan split. However, many Republicans joined Democrats in opposition.

“HB 429 failed in the House, largely due to fiscal conservative opposition,” Bitcoin Laws posted on X (formerly Twitter).

According to Bitcoin Laws, fiscal conservatives were divided on Bitcoin-related legislation. Some argue that using taxpayer money for Bitcoin investments is too risky and amounts to speculation.

“It’s still taxpayer money, and we’re responsible for it, and we need to protect it,” State Representative Steven Kelly said.

Meanwhile, proponents countered that calculated risks are necessary to grow state assets, particularly amid inflation. They described it as a greater threat to taxpayers. In addition, they framed Bitcoin as a tool to preserve and potentially increase the value of state reserves over time.

Despite an amendment attempt to fund the bill with American Rescue Plan Act (ARPA) interest instead of general funds, lawmakers questioned the legality of such a move, further undermining support. 

With the rejection of HB 429, Montana joined Wyoming, North Dakota, Mississippi, and Pennsylvania, where similar Bitcoin-related legislation has failed. Meanwhile, 20 other states have active proposals under consideration.

The price of BTC could be stuck in consolidation for longer than initially anticipated, as the latest on-chain data shows that the Bitcoin Coinbase Premium Index has dropped back beneath zero. What does this dwindling metric signal for the premier cryptocurrency?

Is The Bitcoin Price At Risk Of Downward Movement?

In a recent post on the X platform, prominent crypto pundit Ali Martinez revealed that the Bitcoin Coinbase Premium Index has been declining, dropping back below a critical zone in recent days. The Coinbase Premium Index is an on-chain metric that tracks the difference between the BTC price on Coinbase (USD pair) and Binance (USDT pair).

This indicator can also provide insights into the difference in the buying and selling behaviors of the investors on the two crypto trading platforms. The Bitcoin Coinbase Premium Index reflects the sentiment of the US institutional entities (the major players on Coinbase) and how it differs from those on global exchanges.

Typically, when the Bitcoin price premium on Coinbase rises or is a positive value, it implies increasing demand from US investors, who are willing to spend more than other global investors to purchase the flagship cryptocurrency. On the other hand, the Coinbase Premium Index slipping beneath the zero mark signals that US investors are buying less compared to the global traders.

Source: Ali_charts/X

This low buying activity is highlighted by the drab performance of spot BTC exchange-traded funds in recent weeks. The latest market data shows that the US Bitcoin ETF market registered a total outflow of $559 million in the past week.

With institutional and large US investors not accumulating Bitcoin at current prices, the market leader could struggle to build any real bullish momentum. Historically, a sustained decline of the Coinbase Premium Index metric has been associated with a consolidation period or even potential downside risk for the BTC price in the near term.

BTC Whales Offload Assets

In a separate post on X, Martinez observed that a class of Bitcoin investors has been trimming their holdings in recent weeks. Santiment data shows that whales holding between 10,000 and 100,000 coins have sold 30,000 BTC (worth roughly $2.9 billion) in the past 10 days.

This level of selling activity somewhat explains the sluggish price action of Bitcoin in recent weeks. As of this writing, the price of BTC sits just above the $96,500 mark, reflecting a 0.8% increase in the past 24 hours. The premier cryptocurrency is down by 1.1% in the past week, according to data from CoinGceko.

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured image from iStock, chart from TradingView

Strategy, formerly known as MicroStrategy, may be gearing up for another significant Bitcoin purchase.

Speculation around this move intensified after the company’s co-founder, Michael Saylor, dropped a subtle hint on social media.

Market Buzz Over Saylor’s Bitcoin Tracker Post

On February 23, Saylor shared a Bitcoin tracker on X (formerly Twitter), a move that has historically preceded major acquisitions. His cryptic message suggested that recent Bitcoin transactions were not yet reflected in the tracker.

“I don’t think this reflects what I got done last week,” Saylor wrote on X.

Given his history of sharing similar charts before major Bitcoin acquisitions, the crypto community quickly speculated that the firm was preparing for another purchase.

“Michael Saylor posted his BTC purchase tracker again, meaning Strategy will announce another Big Bitcoin purchase tomorrow,” Nikolaus Hoffman said.

Meanwhile, some speculate that Strategy may allocate up to $2 billion for Bitcoin, aligning with its recent move to raise funds through convertible bonds.

These bonds, which carry no interest but can be converted into company stock, are expected to mature in March 2030 and will serve as unsecured senior obligations.

This capital raise is part of Strategy’s “21/21 Plan,” which aims to secure $42 billion for BTC investments. The company seeks to raise $21 billion through equity sales and another $21 billion via fixed-income securities.

Once a software-focused firm, Strategy has evolved into the largest corporate holder of Bitcoin. Its pivot has significantly boosted investor interest, earning its stock a spot in the Nasdaq-100.

The firm’s last Bitcoin acquisition occurred on February 10, when it purchased 7,633 BTC for $742.4 million. At present, Strategy holds 478,740 BTC, valued at approximately $47 billion, with an overall investment of $31.1 billion.

Meanwhile, the company recently highlighted that its MSTR convertible bonds have returned 71% since issuance, outperforming Bitcoin itself.

Also, Strategy’s aggressive BTC-first approach has inspired other companies to follow suit. According to HODL15 Capital, over 70 publicly traded firms worldwide have now added Bitcoin to their reserves, influenced by Saylor’s Strategy.