Texas governor signs bill adding Bitcoin to official reserves

Texas Governor Greg Abbott has signed Senate Bill 21 (SB21), officially authorizing the creation of the Texas Strategic Bitcoin Reserve, a state-managed fund that will hold Bitcoin as part of the state’s long-term financial assets.

The newly established reserve operates independently of Texas’ general treasury system and aims to strengthen the state’s financial resilience while serving as a potential hedge against inflation,  according  to the bill text.

Furthermore, only assets with a market capitalization exceeding $500 billion are eligible for inclusion, a threshold currently met only by Bitcoin .

The fund will be administered by the Texas Comptroller of Public Accounts and guided by an advisory committee of three crypto investment professionals.

  Governor Greg Abbott signs bill SB 21. Source: Texas Gov

In addition to direct purchases, the reserve may grow through forks, airdrops, investment gains, or even public crypto donations. A public report detailing the fund’s holdings and performance will be issued every two years.

SB21 follows Abbott’s signing of House Bill 4488, which protects the reserve from being absorbed into the state’s general revenue fund, effectively insulating it from shifting budget priorities.

Texas becomes the third US state to approve a Bitcoin reserve law,  joining Arizona  and  New Hampshire . Unlike those states, however, Texas is the first to commit public funds and establish a separate structure for Bitcoin holdings.

Public companies lead in Bitcoin adoption

A rising number of publicly traded firms are adopting Bitcoin as a treasury asset, following an approach taken by Michael Saylor’s Strategy.

On Friday, Bitcoin holding company Nakamoto Holdings, founded by US President Donald Trump’s crypto adviser, David Bailey,  secured $51.5 million in fresh capital  through a private placement in public equity (PIPE) deal to buy more BTC.

Last week, Paris-listed technology firm The Blockchain Group also expanded its Bitcoin reserves with the  purchase of 182 BTC for about $19.6 million , bringing its total holdings to 1,653 BTC.

Over the past month alone, organizations have  added Bitcoin to their treasuries , according to data from BitcoinTreasuries.NET, signaling continued interest in BTC among public companies.