Texas Becomes First U.S. State to Build a Bitcoin Reserve With Real Tax Dollars

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This article was first published on The Bit Journal. Texas has completed the United States’ first publicly funded Bitcoin purchase, executing a $10 million acquisition that signals a new chapter in state-level digital-asset adoption. It is a move that follows closely after legislators passed a bill to establish the first official state Bitcoin reserve in the country.

Texas Executes Landmark Bitcoin Reserve

The state officials verified that the Bitcoin reserve occurred on November 20, when the treasury purchased Bitcoin at around $87,000 per coin. The allocation is the initial stage of a long-term plan to include digital assets in state financial operations.

The acquisition is as a result of Senate Bill 21, which Governor Greg Abbott signed in June. The bill sponsored by senator Charles Schwertner and the House representative Giovanni Capriglione was approved to allow a preliminary Bitcoin purchase of up to 10 million dollars and passed the Texas House unanimously (105-23). As Arizona and New Hampshire discussed similar legislation, Texas was the first state to spend real money instead of just passing a plan.

Texas Uses IBIT for Initial Purchase

Lee Bratcher, the president of the Texas Blockchain Council, claims that the first Bitcoin reserve purchase was done using the iShares Bitcoin Trust (IBIT) of BlackRock, which provides the state-regulated exposure until it establishes its own system of custody. The early stage control is in the office of Comptroller Glenn Hegar, which intends to move to direct Bitcoin custody after formal procurement process has been finalized.

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 ₿ratcher (@lee_bratcher) November 25, 2025

BlackRock has expanded its IBIT at a notable pace, recently passing the 800,000 BTC mark which is around 3.8 percent of the world supply as institutional inflows increase. The adoption of the ETF by Texas puts it in the same category of an increasingly large category of public funds, corporations, and financial institutions that see spot Bitcoin ETFs as a regulated and operationally effective means of conducting Bitcoin purchase activity.

Symbolic Bitcoin Allocation Carries Major Influence

Bitcoin Reserve With Real Tax Dollars — Texas to Build a Bitcoin Reserve

Even though the state of 10 million allocation is a mere 0.0004 percent of the multibillion-dollar expenditures that are incurred by Texas each year, state leaders assert that such a symbolic impact is huge.

In the last few years, Texas has established itself as one of the main centers of cryptocurrency operations by providing incentives to its miners, blockchain task forces, and pro-innovation regulatory positions.

Texas Signals Ambition With Bitcoin Reserve

The creation of a state-supported Bitcoin reserve is the most obvious sign of the inclination of Texas to influence the national policy on digital assets. According to the officials, further information will not be disclosed until the process of selecting a custodian ends, but the first Bitcoin purchase is a landmark in the history of the interaction of U.S. institutional players with Bitcoin.

Since Texas is hastening its digital plan, analysts anticipate that the state will have an impact on other jurisdictions that consider adopting crypto in the long term and diversifying their treasuries.

Conclusion

The first Bitcoin reserve purchase in Texas highlights the broadening role of the state in the policy of digital assets and is an indication of a larger change in the relationship to cryptocurrency of the public institutions. With Texas making a step toward the development of the custody system, the initiative is likely to influence future state policies and spark national debates regarding the use of Bitcoin.

Summary

Texas made the first state-funded Bitcoin purchase in U.S. history, buying $10 million in BTC.
The purchase follows legislation creating the nation’s first funded state Bitcoin reserve.
Texas used BlackRock’s IBIT while developing its own custody system.
The move strengthens Texas’ position as a leading crypto policymaker.