State funds-investment in Bitcoin.25LSO-0488, 1.2
HB0201
FISCAL NOTE
The fiscal impact, in the form of changes in investment revenues, is
indeterminable.
This bill would permit the State Treasurer’s Office (STO) to invest funds from
the General Fund, the Permanent Wyoming Mineral Trust Fund (PWMTF) and the
Permanent Land Fund in Bitcoin. The investments in Bitcoin would not be permitted
to exceed 3 percent of the respective fund.
Based on the market values reported as of November 30, 2024, 3 percent of the
PWMTF would be approximately $353.5 million, and 3 percent of the Permanent Land
Fund would be approximately $182.0 million.
Assuming these maximum amounts were invested in Bitcoin, the State could see a
significant impact on returns, but the precise impact is not known. Bitcoin has
historically seen relatively high volatility. The STO currently looks to balance
the functions of each fund with the overarching goal of achieving the highest
risk-adjusted rate of return.
The STO projects yields in FY26 through FY28 to be 2.98%, 3.07%, and 3.02%
respectively for permanent funds and 4.28%, 4.12%, and 4.02% respectively for
State Agency Pool funds. Yield is defined as the interest and dividend income
from the investment.
Over the long term, total returns for permanent funds are expected to be 6.75%,
while total returns for State Agency Pool funds are expected to be 4.05%. Total
return is defined as growth in the value of the investment, including both yield
and realized & unrealized gains.
The STO would acquire and hold Bitcoin in one or more of the following methods:
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registered investment company or manager.
According to the STO, acquiring and holding Bitcoin would generate additional
expense including the costs of finding and retaining the appropriate custodial
safeguards required in the bill.
Prepared by: Dean Temte, LSO Phone: 777-7881
(Information provided by Samantha Dailey, State Treasurer's Office, 307-777-7408)