The state allocates $10 million toward Bitcoin, signaling accelerating government-level adoption as Texas prepares a long-term digital asset reserve.
Texas has taken a decisive step toward integrating Bitcoin into its financial strategy, purchasing $5 million worth of BlackRock’s spot Bitcoin ETF (IBIT) and preparing an additional $5 million allocation for directly held, self-custodied Bitcoin. The move underscores a growing trend among U.S. states adopting BTC as part of their long-term asset reserves.
Texas Begins Building a Bitcoin Position
The purchase, executed on Nov. 20, was highlighted by Texas Blockchain Council president Lee Bratcher, who confirmed that the state intends to eventually self-custody its Bitcoin holdings. For now, Texas opted to begin its allocation with BlackRock’s ETF while final procedures for direct BTC storage are finalized.
Bratcher noted that “$10M is allocated from general revenue but not all $10M has been deployed yet,” indicating the state’s BTC position is set to grow further.
Pierre Rochard, CEO of The Bitcoin Bond Company, said the move marks a dramatic shift in government attitudes toward digital assets:
“In five years we went from ‘governments will ban bitcoin’ to ‘governments are only buying a small amount.’ Hyperbitcoinization has happened, is happening, and will continue.”
Path Toward a Texas Strategic Bitcoin Reserve
Texas’ acquisition aligns with its broader plan to establish a state-managed Bitcoin reserve, officially authorized by Governor Gregg Abbott earlier this year. The legislation allows the state to hold BTC as part of its long-term treasury, but requires any included asset to have a market capitalization above $500 billion—a threshold Bitcoin already exceeds.
While BlackRock’s IBIT itself does not meet that requirement, the ETF purchase demonstrates a clear step toward building a sovereign Bitcoin position.
Lawmakers indicated that interest may soon extend beyond BTC. Texas Senator Charles Schwertner stated that Ethereum could be added to the reserve if its market cap remains above $500 billion for 24 months, opening the door to multi-asset digital reserves in the future.
Texas Follows Other State-Level and Institutional Buyers
Texas is not the first U.S. state to invest in IBIT. In 2024, Wisconsin’s investment board purchased nearly $100 million worth of the ETF, making it an early institutional adopter.
Analysts also point out a notable trend: IBIT has recently been acquired by Harvard, Abu Dhabi, and now Texas, an unusual convergence of government and institutional buyers for a fund less than two years old.
Despite these endorsements, IBIT remains down about 10% year-to-date, currently trading near $49.56 with slight after-hours movement.
Texas’ $10 million Bitcoin initiative signals a major milestone in U.S. state-level crypto adoption. With plans to shift toward self-custody and build a strategic reserve, Texas is positioning itself at the forefront of governmental engagement with digital assets—potentially setting a model for other states preparing to follow.
Disclaimer
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