Texas is making history in the race to bring Bitcoin into government finance. The state has purchased $5 million worth of BlackRock’s iShares Bitcoin Trust — a move that signals the beginning of a long-term plan to build the nation’s first state-backed Bitcoin reserve.
This investment stems from legislation passed earlier this year that set aside $10 million for Bitcoin accumulation. With this first allocation now complete, Texas appears more serious than ever about embracing digital assets as part of its economic strategy. Lee Bratcher, president of the Texas Blockchain Council, confirmed the purchase and welcomed the state’s progress.
Laying the Foundation for a Bitcoin Reserve
Instead of buying and holding Bitcoin directly right away, Texas chose to gain exposure through BlackRock’s spot Bitcoin ETF while it finalizes operational details for custody and long-term management. Earlier this year, officials issued a public request for information, inviting cryptocurrency companies to provide insights on security, governance, and best practices for maintaining a sovereign Bitcoin reserve.
According to sources familiar with the initiative, the state will soon publish a full request for proposals to select an official custodian — the group that will safeguard the Bitcoin once purchased directly. The current ETF position is considered a temporary bridge until that structure is fully in place.
Other U.S. States Join the Crypto Movement
Texas isn’t alone in looking to crypto as a strategic asset. Several other state-level initiatives are emerging:
- Michigan has quietly built positions in Bitcoin-related investment products for public employee pensions.
- Wisconsin briefly held a large crypto-linked allocation valued at around $350 million before selling earlier this year.
- New Hampshire has already passed legislation authorizing a Bitcoin reserve, though purchases have yet to begin.
- Arizona has approved a plan to route unclaimed crypto assets into a state reserve fund, setting the groundwork for future accumulation.
Momentum is also building at the federal level. The Trump administration has voiced support for a national Bitcoin investment plan and signed an executive order to begin planning — though congressional approval is still required before any government purchases can move forward.
A Potential New Standard for Public Finance
If Texas succeeds in creating a fully operational reserve, it could become a template for other states — and perhaps the country — to follow. For now, the $5 million allocation may be small, but the message is big: The digital asset revolution is no longer just a private-sector story. States are getting ready to HODL too.
Also Read: Crypto Signals Hint at Possible Altcoin Season Ahead
