When a whole state buys Bitcoin, people pay attention. Texas made headlines after investing millions in Bitcoin while the market was dipping. Let’s break it down.
Texas didn’t buy Bitcoin for fun. It became the first state in the United States to officially invest public funds in a Bitcoin ETF.
Texas Makes Its First $5M Bitcoin Move
On November 20, 2025, Texas purchased $5 million in shares of BlackRock’s iShares Bitcoin Trust (IBIT). Lee Bratcher, who monitors the state’s Bitcoin reserves, confirmed the purchase. Despite setting aside $10 million for Bitcoin, the state has only utilized half of it thus far. Bratcher said the state can still buy more because it hasn’t yet deployed the full amount.
CORRECTION: Texas purchased $5M on Nov. 20th. $10M is allocated from general revenue but not all $10M has been allocated.@BitcoinMagazine
— Lee ₿ratcher (@lee_bratcher) November 25, 2025
Texas grabbed IBIT shares at about $87,000 per BTC, taking advantage of the market dip. It’s one of the biggest signs yet that governments are no longer ignoring Bitcoin.
Why Start with IBIT Instead of Bitcoin?
Even though Texas now buys Bitcoin through IBIT, this action is step one. The state plans to switch to self-custodied Bitcoin later. The fact that their custodial systems are not completely prepared in terms of security, audits, and storage is the sole reason why they have started with the ETF. So, the ETF is therefore a temporary solution before the actual Bitcoin vault goes live.
LATEST: 🇺🇸 Texas has become the first US state to publicly invest in Bitcoin, purchasing $5 million worth of shares in BlackRock’s IBIT ETF on Nov. 20. pic.twitter.com/KLkC4RhhmC
— CoinMarketCap (@CoinMarketCap) November 26, 2025
The Law Behind the Move
All this is happening because of a new law, the Texas Strategic Bitcoin Reserve Act (SB 21). This law lets the state hold Bitcoin, but with rules. Only assets with a huge long-term market cap qualify. Currently, only Bitcoin satisfies this rule, which is why the state’s digital reserve begins with Bitcoin only. The move also makes Texas the first state to have a legally recognised Bitcoin reserve strategy.
JUST IN: Texas Strategic Bitcoin Reserve bill SB21 officially PASSES and goes to Governors desk for final signature 🇺🇸 pic.twitter.com/8UMwxTHgg6
— Bitcoin Magazine (@BitcoinMagazine) May 21, 2025
What Happens Next?
Everyone’s watching to see:
- •When Texas deploys the rest of the $10M
- •When it switches from IBIT to actual, self-custodied Bitcoin
- •How secure and transparent the storage system will be
- •Whether other states copy this move
Conclusion
Texas buys Bitcoin at a dip, establishes a legal Bitcoin reserve, and becomes the first U.S. state to do so. Whether the remaining $5M is eventually deployed, this marks a new chapter in Bitcoin adoption. Texas seems ready to lead the way.