Bitcoin News Today: Texas Challenges Tradition: First U.S. State Allocates $10M to Bitcoin Reserve

Texas Becomes First U.S. State to Establish Bitcoin Reserve with $10M Allocation

Texas has become the first U.S. state to allocate public funds to a Bitcoin reserve, purchasing $5 million worth of the cryptocurrency through BlackRock's IBIT ETF as part of a broader $10 million strategic initiative. The move, announced on November 20, 2025, marks a significant step in the state's efforts to diversify its treasury holdings and position itself as a leader in digital-asset policy. The purchase was executed using surplus budget funds and is part of Senate Bill 21, enacted in June 2025, which created the Strategic Bitcoin Reserve as a hedge against inflation and a long-term store of value.

The initial allocation of $5 million was made via the IBIT ETF, with the state acquiring Bitcoin at an average price of $87,000 per coin. Texas officials emphasized that the purchase is temporary, as the state plans to transition to direct self-custody once its procurement process for secure storage solutions - ranging from cold storage to multi-institutional setups - is finalized. The Comptroller's office is overseeing the transition, which is expected to occur in the coming months.

The initiative has drawn comparisons to institutional investments in Bitcoin by entities such as Harvard University, which recently tripled its IBIT holdings to $442.8 million, and Abu Dhabi's Al Warda Investments, which more than tripled its stake in the same ETF in the third quarter. These moves underscore a growing trend of institutional adoption, with Bitcoin increasingly viewed as a "store of value" alongside gold.

Texas's decision has also sparked national attention, particularly as it aligns with broader efforts to establish the state as a crypto-friendly hub. Governor Greg Abbott has championed blockchain innovation, including legislative protections for the mining industry and task-force initiatives to explore digital assets. The reserve's creation mirrors similar proposals in states like Arizona and New Hampshire, though Texas is the first to allocate actual capital to the cause.

The $10 million reserve represents just 0.0004% of Texas's biennial budget, but officials stress its symbolic significance in challenging conventional asset management paradigms. With the state's custody framework still in development, the next phase of the initiative will likely focus on transparency, including annual audits and public reporting.

As institutional interest in Bitcoin grows, Texas's pioneering approach highlights the evolving role of digital assets in public finance - and the potential for other states to rethink their own treasury strategies.