State finance: other; strategic bitcoin reserve; establish. Amends sec. 351 of 1984 PA 431 (MCL 18.1351) by adding sec. 351a.

HB 4087 establishes a "strategic bitcoin reserve" by adding Section 351a to Michigan's budget act, allowing the state treasurer to invest up to 10% of funds from the general fund or the countercyclical budget fund into cryptocurrency. The bill requires that any cryptocurrency held must be secured through specific custody methods (like secure custody solutions or qualified custodians) and prohibits loans that increase financial risk. It also mandates that crypto payments received by the state be converted to cash and deposited into the general fund, with designated funds reimbursed from that fund. This bill directly affects how the state treasurer manages state funds and handles cryptocurrency transactions, with no impact on individual citizens or businesses.