Texas has become the first American state to acquire bitcoin for its public treasury, setting off a nationwide competition as other states rush to establish their own cryptocurrency strategic reserves.
CNBC reports that Texas has made history by becoming the first state to purchase bitcoin as part of its public investment strategy, launching what experts are calling a “Reserve Race” among states seeking to position themselves at the forefront of digital asset adoption. The move comes as numerous states across different political alignments pursue legislation to bring cryptocurrencies onto their public balance sheets.
The Texas crypto purchase involved approximately five million dollars invested in the BlackRock iShares Bitcoin Trust, one of the largest bitcoin exchange-traded funds that has accumulated over seventy-two billion dollars in assets under management since its January 2024 launch. The state comptroller’s office executed the transaction on November 20, 2025, when bitcoin was trading at approximately ninety-one thousand three hundred thirty-six dollars per coin. With bitcoin trading above ninety-five thousand dollars as of recently, the investment has already shown modest gains.
This purchase represents only half of the ten million dollars Texas has allocated for its Strategic Bitcoin Reserve. State officials have characterized this initial ETF investment as a placeholder measure while they develop the necessary security infrastructure and storage protocols for holding actual bitcoin directly. The legislative framework for the reserve was established through a 2024 law that authorized the state comptroller to hold cryptocurrency.
New Hampshire actually preceded Texas in passing crypto strategic reserve legislation, enacting its law last May. The New Hampshire law grants the state treasurer authority to invest up to five percent of state funds in cryptocurrency ETFs, though the authorization also extends to precious metals including gold. Arizona has passed similar legislation, while Massachusetts, Ohio, and South Dakota all have cryptocurrency reserve bills at various stages of committee review and legislative consideration.
The trend toward state-level cryptocurrency adoption is not strictly following partisan political lines, despite much of the legislation being primarily sponsored or co-sponsored by Republican lawmakers. The cryptocurrency industry emerged as a major political force during the 2024 election cycle, becoming the largest corporate donor and providing support to candidates from both major parties. The industry is already accumulating resources for the 2026 midterm elections.
Justin Marlowe, a public policy professor at the University of Chicago, views the state-level initiatives primarily as signaling mechanisms at this stage. According to Marlowe, governors seeking to demonstrate openness to innovative business development in the digital economy find these cryptocurrency measures to be relatively low-cost and low-risk ways to communicate that message. This explains why political leaders across the ideological spectrum and throughout different geographic regions have taken concrete steps in this direction.
In states taking more substantial steps, including Texas, Arizona, and Florida, Marlowe noted that acknowledging the growing political influence of cryptocurrency advocates has played a significant role in advancing these initiatives.
Common elements across state cryptocurrency initiatives include authorizing state treasurers or other investment officials to allocate limited amounts of public funds to crypto investments and establishing governance structures necessary for managing cryptocurrency holdings. These governance frameworks often involve more frequent reporting requirements and stronger custodial agreements compared to traditional asset classes. The funding sources for these reserves vary, with some states using cash while others utilize government-seized cryptocurrency, similar to the federal approach.
President Donald Trump signed an executive order in March to create a strategic bitcoin reserve at the federal level, though the authorization was limited to seized cryptocurrency to demonstrate that taxpayers would bear no direct financial burden from the initiative.
Texas’s emergence as the first state to fund a crypto reserve follows logically from its established position as a cryptocurrency hub, particularly in bitcoin mining operations. The state’s combination of affordable and flexible power infrastructure, along with a generally pro-cryptocurrency political environment, has positioned Texas as a significant player in both the national and global bitcoin mining market in recent years.
Beyond strategic reserves, states are integrating cryptocurrency into core financial and budgeting functions. New Hampshire became the first state to approve a bitcoin-backed municipal bond issuance last November. The proposed one hundred million dollar issuance would represent the first time cryptocurrency serves as collateral in the U.S. municipal bond market. While the transaction has not yet occurred, plans call for completion this year.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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