Texas Makes First Purchase for Its State Bitcoin Reserve

Texas has made its first allocation to the Texas Strategic Bitcoin Reserve, according to information released by the Texas Blockchain Council. The organization stated that the state executed a purchase of approximately $5 million in IBIT, BlackRock’s bitcoin exchange-traded fund, last week as part of a previously approved $10 million bitcoin allocation.

This would represent the first use of funds authorized under SB 21, the law adopted in June and signed by Governor Greg Abbott, which allows the creation of a state-managed bitcoin reserve operated by the Texas Treasury Safekeeping Trust Company. Supporters of SB 21 said the reserve gives Texas the ability to evaluate bitcoin’s performance compared to other long-term strategic assets.

Lee Bratcher, president of the Texas Blockchain Council, noted that the purchase took place on November 20 and is the first transaction of this type carried out by a U.S. state. Texas authorities have not yet released official documentation confirming the move.

According to the most recent 13F filing, the Texas Treasury Safekeeping Trust Company holds approximately $667 million in SPY and $34 million in a Janus Henderson fund. If the IBIT purchase is confirmed, it would become the third major position in the portfolio. Additional institutional interest, including from an Abu Dhabi sovereign wealth fund and Harvard, has contributed to rising demand for IBIT.