Texas has made U.S. financial history by becoming the first state to purchase and hold Bitcoin in its official treasury, investing $10 million into its newly created Strategic Bitcoin Reserve on November 20, 2025.
The inaugural buy was executed through BlackRock’s IBIT spot ETF at an estimated average price of $87,000 per Bitcoin, marking a landmark moment for state-level digital asset adoption.
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…
A Legislative Framework Built for Bitcoin
The reserve is the product of legislation passed earlier this year, which authorized an initial $10 million allocation for Bitcoin purchases. Lawmakers framed the initiative as a forward-looking strategy to diversify state assets, protect long-term purchasing power, and strengthen Texas’ standing as a national hub for digital innovation.
Long-Term Strategy With Self-Custody on the Horizon
Although the state used an ETF to complete its first purchase, officials emphasized that this is only the starting point. Plans are underway to eventually move the Bitcoin into direct, state-managed custody, allowing Texas to hold the assets natively rather than through a fund structure. The transition is expected to unfold gradually as infrastructure and regulatory processes are put in place.
Supporters and Critics Split Over the Move
Supporters call the reserve a breakthrough for institutional acceptance of Bitcoin, arguing that Texas is setting a precedent other states will have to consider. They cite diversification benefits and Bitcoin’s potential role as a long-term hedge.
Critics, however, point to Bitcoin’s price volatility and question whether taxpayer funds should be exposed to such market swings. Despite the debate, the state has made clear that this is a long-term position, not a short-term speculative play.
Other States May Follow Texas’ Lead
Texas’ decision comes as several other states, including Arizona and New Hampshire—are actively exploring legislation to create their own Bitcoin reserves. With Texas now officially holding Bitcoin on its balance sheet, the move may accelerate similar initiatives across the country, potentially reshaping how state treasuries think about digital assets in the years ahead.