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Texas has become the first U.S. state to obtain bitcoin exposure with public funds, allocating $10 million to its new Strategic Bitcoin Reserve.
Texas formally entered the bitcoin arena on Nov. 20, 2025, when officials deployed $10 million of surplus budget funds to acquire bitcoin exposure via Blackrock’s IBIT exchange-traded-fund (ETF). The buy stems from Senate Bill 21, signed in June 2025, which created the reserve as a long-term hedge and positioned the state as an early adopter of digital assets in public finance. The allocation represents about 0.0004% of Texas’ biennial budget, but it marks a symbolic break from traditional asset management. Lawmakers framed the initiative as a strategic response to inflation and federal debt concerns, mirroring national conversations surrounding digital-asset reserves.
Texas plans to shift the bitcoin exposure from ETF shares to self-custody once its custody framework is finalized, with the Comptroller’s office evaluating options ranging from cold storage to multi-institutional setups. Officials also signaled that the reserve could expand beyond its initial $10 million allocation, depending on future legislative reporting and market developments. Supporters say the move reinforces the state’s pro- bitcoin posture and could spur other states to explore similar reserves, while early reactions from crypto industry leaders emphasized Texas’ bid to cement itself as a national hub for digital-asset innovation. The state’s decision places it ahead of nearly a dozen other jurisdictions considering comparable plans, giving Texas a first-mover advantage in adopting bitcoin as a treasury-level instrument.
FAQ ❓
- Why did Texas buy bitcoin?Texas approved the reserve to test bitcoin as a long-term strategic asset and inflation hedge.
- How much bitcoin did Texas purchase?The state spent $10 million for BTC exposure through a spot ETF.
- Will Texas expand its bitcoin holdings?Officials said future additions are possible depending on legislative reviews.
- What custody plan will Texas use for its bitcoin?The state intends to shift from ETF shares to self-custody bitcoin once its framework is finalized.