The state of Texas has reached a new stage of its strategy in digital assets, being the first state in the U.S. to acquire Bitcoin as a government reserve program.
The transaction serves as a move in state-level financial policy and sets a precedent for how U.S. public institutions may treat digital assets in the years ahead. State officials confirmed that the acquisition, valued at $10 million and completed at an approximate basis of $87,000 per Bitcoin, is the opening step in a reserve plan that has been under development for more than a year.
Texas first allocation completed through BlackRock’s IBIT ETF
According to Lee Bratcher, President of the Texas Blockchain Council, the initial purchase was executed through BlackRock’s iShares Bitcoin Trust (IBIT). At the same time, the state finalizes the process for direct self-custody. Information shared by Bratcher indicates that $5 million of the allocation was applied at the time of purchase, and the remaining balance aligns with the structure of the state’s broader reserve commitment.
TEXAS BOUGHT THE DIP!
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— Lee â‚¿ratcher (@lee_bratcher) November 25, 2025
Bratcher stated that Texas intends to self-custody its Bitcoin once the request-for-proposal process concludes. Until then, ETF exposure acts as the mechanism needed to initiate the reserve without delaying the legislative timeline.
How Texas built its strategic Bitcoin Reserve
The acquisition is preceded by legislative actions that occurred earlier this year. In June, the Texas governor signed a bill that established a Strategic Bitcoin Reserve, following lawmakers’ analysis of a proposal version during the last legislative session.Â
The legislation was based on a bill submitted by State Representative Giovanni Capriglione of Texas, who suggested considering Bitcoin as a long-term strategic asset. The proposal outlined cold-storage requirements, minimum holding periods of years, and access to voluntary contributions made by Texas residents. It also allowed state agencies to receive cryptocurrency payments and convert them into Bitcoin for deposit in the reserve.
This move by Texas occurs amid a period during which several institutional investors have grown their investments in regulated Bitcoin vehicles. The Harvard University Foundation recently increased its stake in IBIT to the highest point of investment, at $442.8 million, marking the largest single reported investment the foundation has ever made. Al Warda Investments of Abu Dhabi and Emory University have also increased their investment in Bitcoin ETFs over the past several months.
Other governments explore Bitcoin-linked instruments
The U.S. jurisdiction is not the only one looking into digital-asset approaches. New Hampshire recently became the first government to issue a Bitcoin-backed municipal bond in the world, which was issued earlier this month. The Business Finance Authority of the state sanctioned a 100 million conduit system, which enables private companies to borrow funds using the over-collateralized form of Bitcoin deposited in trust.
In the arrangement, borrowers are required to pledge Bitcoin to the value of approximately 160% of the loan amount. The liquidation is automated to safeguard bondholders if the collateral’s value decreases. Fees, as well as any appreciation in the posted Bitcoin, are used to fund the Bitcoin Economic Development Fund in the state of New Hampshire.
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