Bitcoin News Today: Texas Leads U.S. Government Bitcoin Adoption with $10M Strategic Reserve

Texas has become the first U.S. state to allocate funds for a strategic Bitcoin reserve, purchasing $5 million in shares of BlackRock's iShares Bitcoin Trust (IBIT) on November 20, 2025, and planning an additional $5 million in direct, self-custodied Bitcoin acquisitions. The move, disclosed by Lee Bratcher, president of the Texas Blockchain Council, marks a pivotal step in the state's broader effort to diversify its financial portfolio and position itself at the forefront of government adoption of digital assets. The $10 million total allocation is drawn from the state's general revenue, with the initial ETF purchase serving as a temporary measure while Texas finalizes its long-term custody framework according to reports.

The state's decision aligns with legislation signed in June by Governor Gregg Abbott, which authorized the creation of a Bitcoin reserve for long-term financial assets, provided the cryptocurrency maintains a market cap above $500 billion—a threshold Bitcoin has consistently exceeded. While the ETF purchase is not part of the official reserve due to its lower market cap, it allows Texas to gain regulated exposure while it develops infrastructure for direct ownership as research shows. This approach mirrors similar strategies by institutions like Harvard University and Abu Dhabi's Al Waha Investment, which have also invested in IBIT according to data.

The broader cryptocurrency market has experienced turbulence, with Bitcoin falling below $90,000 in early November after a sharp drawdown from its October peak of $125,000 as market data shows. However, Texas's purchase occurred as the asset rebounded from oversold levels, with over $200 million in weekend liquidations signaling potential stabilization according to analysis. Analysts suggest the state's entry could provide a floor for Bitcoin, particularly as more governments and institutions explore strategic allocations.

Industry experts have hailed the move as a symbolic shift in government sentiment toward Bitcoin. Pierre Rochard, CEO of The Bitcoin Bond Company, noted that in five years the narrative around Bitcoin has transformed from potential bans to incremental adoption by governments. Texas's actions follow earlier moves by Wisconsin, which allocated $100 million in IBIT in 2024, and New Hampshire, which passed legislation for a state Bitcoin reserve in 2025 according to industry reports. The trend reflects growing institutional confidence in Bitcoin as a hedge against inflation and a store of value, despite recent market volatility.

Texas's plan also highlights the evolving infrastructure for digital asset management. The state is finalizing a request for proposals to select a custodian for its direct Bitcoin holdings, with self-custody expected to replace ETF exposure once systems are operational as industry sources report. This shift underscores a broader industry trend toward institutional-grade custody solutions, driven by regulatory clarity and demand for direct ownership.

The implications of Texas's move extend beyond the state. With 36 Bitcoin-related reserve bills active across 19 U.S. states as of mid-2025, the race to establish sovereign crypto holdings is accelerating. As states like Florida and Wyoming consider similar initiatives, the federal government's delayed response—hampered by partisan debates over a national Bitcoin reserve—risks ceding leadership to state actors. For now, Texas's $10 million investment serves as a blueprint for how governments can navigate the complexities of digital asset adoption while balancing risk and reward.