Bitcoin Updates: Texas Breaks New Ground as First U.S. State to Allocate $10M for Bitcoin Holdings

Texas Sets Precedent as First U.S. State to Create

Reserve with $10 Million Commitment

Texas has made history by being the first state in the U.S. to dedicate public resources to a Bitcoin reserve, acquiring $5 million in Bitcoin via BlackRock's IBIT ETF as part of a larger $10 million plan. This initiative,

, is a major milestone in Texas’s strategy to broaden its treasury assets and establish itself at the forefront of digital asset policy. The purchase, funded by surplus budget, is a component of Senate Bill 21, , which introduced the Strategic Bitcoin Reserve to serve as both an inflation hedge and a long-term value store.

The state’s first $5 million investment was made through the IBIT ETF,

of $87,000 per Bitcoin. Officials clarified that this holding is temporary, once the state finalizes its selection of secure storage solutions, which may include cold storage or multi-institutional arrangements. The Comptroller’s office is , anticipated to be completed in the near future.

This move has drawn parallels to institutional Bitcoin investments by organizations like Harvard University,

to $442.8 million, as well as Abu Dhabi’s Al Warda Investments, which also more than tripled its IBIT investment in the third quarter. of institutional participation, with Bitcoin being increasingly regarded as a “store of value” similar to gold.

Texas’s move has captured nationwide interest,

to position the state as a leader in the crypto sector. Governor Greg Abbott has been a strong supporter of blockchain technology, advocating for laws that protect mining operations and launching task forces to study digital assets. seen in states like Arizona and New Hampshire, but Texas stands out as the first to allocate real funds to such a program.

Although the $10 million reserve accounts for only 0.0004% of Texas’s two-year budget, officials emphasize its importance as a challenge to traditional asset management models.

, the next steps are expected to prioritize transparency, including yearly audits and public disclosures.

As more institutions show interest in Bitcoin, Texas’s trailblazing move underscores the shifting landscape of digital assets in government finance and may inspire other states to reconsider their own treasury approaches.