Texas has officially become the first U.S. state to buy bitcoin for its Strategic Bitcoin Reserve, marking a historic moment in state-level adoption of digital assets. According to Lee Bratcher, President of the Texas Blockchain Council, the state acquired $5 million worth of bitcoin at approximately $87,000 per BTC on November 20.
TEXAS BOUGHT THE DIP!
— Lee ₿ratcher (@lee_bratcher) November 25, 2025
Texas becomes the FIRST state to purchase Bitcoin with a $10M investment on Nov. 20th at an approximately $87k basis!
Congratulations to Comptroller @KHancock4TX and the dedicated investments team at Texas Treasury who have been watching this market… pic.twitter.com/wsMqI9HrPD
The purchase was executed through BlackRock’s iShares Bitcoin Trust (IBIT), while Texas works toward setting up its own self-custody infrastructure. The state’s move is viewed as the first direct implementation of Senate Bill 21, a law enacted in June 2025 by Governor Greg Abbott, which created a framework for a Texas Strategic Bitcoin Reserve under the management of the Texas Treasury Safekeeping Trust Company.
“This milestone marks the first bitcoin purchase by a U.S. state,” Bratcher said in comments shared on social media. “Texas will eventual self-custody bitcoin, but while that RFP process takes place, this initial allocation was made with BlackRock’s IBIT ETF.”
Legislative groundwork for a bitcoin reserve
Texas lawmakers had been exploring the idea of a state-managed bitcoin reserve since last year. The original legislation, led by State Representative Giovanni Capriglione, proposed that the state buy and hold bitcoin as a strategic asset stored in cold wallets for at least five years.
The bill also introduced provisions for citizen donations, transparency through annual audits, and the possibility for state agencies to accept and convert cryptocurrencies into bitcoin. The framework drew inspiration from a federal proposal by President Donald Trump and Senator Cynthia Lummis, reflecting a growing global and U.S. political focus on bitcoin-backed reserves.
Senator Charles Schwertner, one of the bill’s backers, previously said the state “should have the option of evaluating the best performing asset over the last 10 years,” alluding to bitcoin’s superior long-term returns compared to many traditional assets.
According to filings from the Texas Treasury Safekeeping Trust Company, the $5 million investment in IBIT represents part of a broader $10 million allocation approved under SB 21. As of recent financial disclosures, the Trust holds roughly $667 million in SPY and $34 million in Janus Henderson funds, meaning bitcoin now joins a small but growing portion of Texas’s diversified portfolio.
Institutional interest continues to rise
Texas’s move follows a growing trend of institutional and educational entities allocating capital to bitcoin ETFs. Harvard University’s endowment recently tripled its IBIT holdings to $442.8 million, making it its largest publicly declared investment. Emory University and Abu Dhabi’s Al Warda Investments have also expanded their bitcoin ETF exposure in recent months.
Bloomberg ETF analyst Eric Balchunas noted that the fund, still less than two years old, is now owned by leading institutions across academia and sovereign wealth, calling it “the only ETF to ever be owned by all three.”
State of Texas joining Harvard and Abu Dhabi in recent $IBIT purchase. Pretty sure that's the only ETF to ever be owned by all three. More wild stuff for a not-yet-even-two-years-old fund. https://t.co/uJHJKfKsO3
— Eric Balchunas (@EricBalchunas) November 25, 2025
Bitcoin’s price currently hovers around $87,500, roughly 30% below its all-time high, but this hasn’t discouraged long-term investors who view state-level participation as a sign of growing legitimacy for the asset class.
Bratcher, who has championed pro-bitcoin legislation across Texas, said that he believes the state has “bought the dip,” referring to bitcoin’s correction from over $120,000 earlier this year. The Texas Blockchain Council, a nonprofit advocacy group he leads, includes more than 100 corporate members and numerous individuals promoting Texas as a center for bitcoin and blockchain innovation.
Other states follow with bitcoin-backed initiatives
Texas may be the first state to execute a purchase, but it’s not alone in exploring digital asset reserves. New Hampshire and Arizona have been developing their own frameworks to treat bitcoin as a strategic reserve asset.
Earlier this month, New Hampshire became the first government worldwide to approve a $100 million bitcoin-backed municipal bond through its Business Finance Authority (BFA). The structure allows private companies to borrow against over-collateralized bitcoin held in custody. Borrowers must post 160% of the bond’s value in bitcoin, with fees and potential appreciation directed into the state’s Bitcoin Economic Development Fund.
Meanwhile, Arizona has advanced legislation that channels unclaimed crypto properties into a state-controlled bitcoin stockpile, contributing to a growing movement among U.S. states to integrate digital assets into their fiscal strategies.
Dennis Porter, CEO of the Satoshi Action Fund, which helps draft bitcoin reserve legislation nationwide, said that these efforts represent incremental progress.
“We are one of those organizations that is happy to meet lawmakers where they're at, and if they're not ready for it, to work on what they are ready to work on,” he said.
As more legislatures reconvene early next year, Porter expects momentum to accelerate. “You're going to see a bunch of these states pop up when they try to do these efforts again,” he added.
Texas leads a new era of digital state reserves
With this initial bitcoin purchase, Texas has not only established itself as a pioneer among U.S. states but also signaled that bitcoin is entering the mainstream of public finance. As Bratcher put it, while the state prepares to hold its own private keys, this first acquisition “marks a new era where state treasuries begin to diversify with digital assets.”
Jordan V.
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