Texas is the first state to add Bitcoin to its reserves

Texas bought $5 million in bitcoin for its Strategic Reserve on November 20, becoming the first U.S. state to acquire the asset, according to Texas Blockchain Council President Lee Bratcher. The state purchased the bitcoin at about $87,000 per token through BlackRock’s iShares Bitcoin Trust while it completes plans for eventual self-custody.

The reserve program followed legislation signed in June that created a formal state Bitcoin Reserve. Texas officials had previously examined ways to build such a reserve without using taxpayer funds. Bratcher said the current purchase was made through the ETF while the state’s request-for-proposal process for long-term custody is underway.

The move reflects wider institutional interest. Harvard University’s endowment recently tripled its IBIT position to $442.8 million, marking its largest publicly disclosed holding. Emory University and Abu Dhabi’s Al Warda Investments also increased their exposure to bitcoin exchange-traded funds.

Bitcoin is trading near $87,500, which is about 30% below its record high. Bratcher was the first to disclose news of the Texas acquisition. He leads the Texas Blockchain Council, an industry group with more than 100 member companies and several hundred individual members. He supported the reserve legislation and worked with lawmakers as it advanced through the state Senate.

Texas considered similar measures last year. State Representative Giovanni Capriglione introduced a bill to create a Strategic Bitcoin Reserve with provisions for long-term cold storage, resident donations, and optional cryptocurrency acceptance by state agencies. The proposal required annual audits and public reports and drew on a federal plan promoted by former President Donald Trump and Senator Cynthia Lummis.

Other states and jurisdictions have moved ahead with related initiatives. New Hampshire approved a $100 million bitcoin-backed municipal bond earlier this month, becoming the first government to authorize such a structure. The state’s Business Finance Authority will issue the conduit bond, allowing private companies to borrow against over-collateralized bitcoin held in custody. Borrowers must post roughly 160% of the bond’s value, and automated liquidation protects bondholders during price declines. Any fees and gains will support New Hampshire’s Bitcoin Economic Development Fund.