Texas Advances Toward Building a State-Backed Bitcoin Reserve

Texas is moving closer to becoming the first U.S. state to establish a long-term bitcoin reserve, taking an early step by securing $5 million worth of BlackRock’s iShares Bitcoin Trust (IBIT). According to the Texas Comptroller’s office, this purchase acts as a temporary placeholder while the state finalizes its formal plan and selects a custodian to manage the reserve. Earlier this year, lawmakers approved $10 million to fund the Texas Strategic Bitcoin Reserve, signaling a strong commitment to integrating digital assets into the state’s investment strategy.

The state recently completed an industry-wide information-gathering initiative aimed at identifying best practices for building and safeguarding a bitcoin reserve. Various crypto companies provided input on custody solutions, risk management, and operational frameworks. While ETF investments are not direct bitcoin holdings, they represent a strategic first step as Texas prepares the infrastructure necessary for long-term digital asset storage.

Texas is not alone in exploring government-backed crypto reserves. New Hampshire, Arizona, Michigan and Massachusetts are pursuing their own initiatives, though progress varies. New Hampshire, despite passing legislation first, has yet to launch its reserve. However, it recently authorized a $100 million bitcoin bond to support crypto-focused economic development. Arizona is working to channel unclaimed crypto assets into a dedicated reserve. Other states, including Michigan and Massachusetts, are rumored to be preparing new proposals for the upcoming legislative sessions.

Advocates such as Dennis Porter of the Satoshi Action Fund continue to guide lawmakers through gradual, practical approaches to bitcoin adoption. Porter noted that recent market volatility is unlikely to derail these efforts, as current price drops have not triggered major concerns among policymakers. Texas Blockchain Council president Lee Bratcher even praised Texas for “buying the dip,” acquiring bitcoin at roughly $87,000 following a significant market pullback from above $120,000.

As more states revisit cryptocurrency legislation early next year, momentum for state-level bitcoin reserves is expected to accelerate across the U.S.