Under New Hampshire's groundbreaking legislation, the state's Bitcoin investment is carefully structured with a 5% cap on total public funds that can be allocated to qualifying digital assets. This conservative approach balances innovation with fiscal responsibility, ensuring the state maintains prudent exposure to cryptocurrency volatility while still participating in potential growth opportunities.12

The law includes specific safeguards for how these digital assets must be secured. Bitcoin holdings must be maintained through one of three approved methods: state-controlled multisignature wallets, qualified custodians, or U.S.-regulated exchange-traded products (ETPs).34 These custody requirements were deliberately designed to protect taxpayer funds while allowing the state treasury to diversify its investment portfolio. Currently, Bitcoin is the only cryptocurrency that meets the $500 billion market capitalization threshold required by the legislation, with its market cap standing at approximately $1.9 trillion as of May 2025.56

The new law mandates that any Bitcoin or digital assets acquired by New Hampshire must be held in U.S.-regulated custody through one of three secure methods: a state-controlled multisignature (multisig) wallet, a qualified custodian, or a U.S. exchange-traded product.123 Multisig technology requires multiple private keys to authorize transactions, creating a robust security framework where no single entity has complete control over the funds.4

For New Hampshire's treasury management, the multisig approach provides institutional-grade security by distributing control across multiple authorized parties, eliminating single points of failure.5 This custody arrangement ensures maximum security, long-term stability, and transparent fiscal management of taxpayer funds-critical considerations when handling public reserves.67 The implementation of this secure custody solution aligns with the law's broader goal of responsibly integrating digital assets into the state's financial strategy while maintaining strict oversight and protection of public investments.89

The new law establishes strict eligibility criteria for digital assets that can be included in New Hampshire's reserve. Only cryptocurrencies with a market capitalization exceeding $500 billion qualify for investment, effectively limiting the state's options to Bitcoin, which currently has a market cap of approximately $1.9 trillion.12 This high threshold ensures that only well-established digital assets can be considered, excluding more speculative altcoins from the state's portfolio.3

The $500 billion market cap requirement mirrors similar language in other proposed cryptocurrency legislation, including Trump's executive order on a national Strategic Bitcoin Reserve4 and bills introduced in other states.5 This conservative approach reflects New Hampshire's commitment to fiscal responsibility while still embracing innovative financial instruments. Under current conditions, the state could potentially allocate around $181 million (approximately 1,194 BTC at current prices) toward Bitcoin investments, though this would be shared with precious metals as both fall under the same 5% allocation cap.26