Texas Makes History with First State-Funded Bitcoin Reserve

Texas Commits Public Funds to Bitcoin Investment

On June 23, 2025, Governor Greg Abbott made financial history by signing Senate Bill 21, officially establishing the Texas Strategic Bitcoin Reserve. This initiative makes Texas the first U.S. state to use public funds to directly invest in bitcoin.

The legislation sets aside $10 million from the state’s budget for the initial bitcoin purchase. While that amount is a small fraction—about 0.0004%—of the state’s total finances, it carries major symbolic weight.

Structure, Safeguards, and Oversight

The new reserve will be independently managed by the Texas Comptroller’s office and overseen by a dedicated advisory board made up of three to five cryptocurrency experts. In addition, House Bill 4488 was passed alongside the initiative to prevent the bitcoin holdings from being swept into the general fund during routine financial operations.

To ensure stability, the law limits reserve assets to cryptocurrencies with a market cap above $500 billion. At present, only bitcoin qualifies.

Strategic and Economic Implications

Texas’s decision sets a major precedent. Unlike other states that have merely authorized crypto reserves, Texas is the first to actively fund one. Industry leaders view the move as a powerful statement of belief in bitcoin’s long-term value. Lee Bratcher, President of the Texas Blockchain Council, described it as proof that Texas “understands the future of finance is digital.”

This initiative contrasts with the federal government’s approach. While the Biden administration’s efforts have involved managing seized crypto assets, Texas is making a deliberate investment.

The Texas Comptroller will soon define how the reserve will be implemented. With a “Rainy Day Fund” worth between $25 and $29 billion, Texas has the capacity to increase its bitcoin holdings over time. For now, the $10 million allocation serves as a symbolic but strategic opening move.

Across the U.S., only Arizona and New Hampshire have taken steps to authorize bitcoin reserves, but Texas is the first to back its plan with real capital. This move also mirrors a global trend, as countries like El Salvador continue to hold bitcoin as part of their national reserves.

This landmark decision could encourage other states—and even federal agencies—to consider public crypto investments. It represents a clear shift in how digital assets are viewed: not as risky experiments, but as potential cornerstones of a diversified financial strategy.