Texas has made history as the first state in the U.S. to add
Bitcoin
to its treasury, purchasing $10 million in BTC on November 20 as part of its newly formed Strategic Bitcoin Reserve
as reported by Cryptobriefing
. The initial acquisition was carried out via BlackRock’s spot Bitcoin ETF, IBIT, with an average purchase price of about $87,000 per Bitcoin, according to Lee Bratcher, president of the Texas Blockchain Council. This move represents a major milestone in Texas’s strategy to broaden its financial reserves and highlights the increasing acceptance of cryptocurrency among institutions as a strategic holding.
This investment, which will eventually be moved to self-custody, is in line with the wider trend of institutional Bitcoin adoption. For instance,
Michael Saylor of MicroStrategy
has been a leading advocate, recently adding 8,178 Bitcoins for $835.6 million at an average of $102,171 per coin. In another example,
Exodus Movement, a provider of crypto wallets
, recently used its Bitcoin reserves to acquire W3C Corp for $175 million, funding the purchase with its digital assets. These examples highlight Bitcoin’s growing importance as a reserve asset for both corporations and governments.
Texas’s move is a calculated decision that weighs innovation against risk. Although the state describes this purchase as a long-term investment,
Bitcoin’s recent price swings
— dropping below $90,000 in November — illustrate the difficulties of adding crypto to conventional investment portfolios. This decision also comes as global regulations evolve, such as Japan’s upcoming rule requiring crypto exchanges to maintain reserves to cover losses from hacks, which may shape how institutions approach digital assets in the future.
Some critics point to Bitcoin’s volatility and regulatory ambiguity as significant risks, especially for public funds. Supporters like Bratcher, however, argue that Bitcoin offers protection against inflation and serves as a reliable store of value during times of monetary uncertainty. Texas’s example may encourage other states to consider similar approaches, particularly as the U.S. addresses concerns about foreign hardware security in the crypto mining sector.
---
