Texas has doubled its Bitcoin holdings by executing a second $5 million purchase, elevating the state's Strategic Bitcoin Reserve to a total of $10 million. This move, under Senate Bill 21 (SB 21) signed in June 2025, positions Texas as the first U.S. state to actively fund and manage a state-run Bitcoin reserve, marking a significant step in institutional crypto adoption.
Details of the Purchases
The initial $5 million was acquired in November 2025 through shares in BlackRock's iShares Bitcoin Trust (IBIT) ETF as a placeholder while the state finalizes self-custody infrastructure. The second $5 million purchase, reported on December 17, 2025, brings the total to $10 million—fully utilizing the allocation approved by the Texas Legislature.
Background: Senate Bill 21
Signed by Governor Greg Abbott in June 2025, SB 21 establishes the Texas Strategic Bitcoin Reserve as a special fund outside the state treasury. Administered by the Comptroller of Public Accounts, it allows investment in cryptocurrencies with a market cap of at least $500 billion—currently met only by Bitcoin. The fund aims to hedge against inflation, enhance financial resilience, and diversify state assets.
Texas Leads in Crypto Adoption
Texas already hosts a significant portion of global Bitcoin mining due to abundant energy resources and pro-crypto regulations. This reserve reinforces the state's position as a hub for digital assets, potentially inspiring other states like Arizona and New Hampshire, which have similar laws but no executed purchases yet.
Political Context and National Implications
This advancement in Texas comes amid growing national political support for cryptocurrencies. The administration of President Donald Trump, reelected in 2024, has promoted pro-Bitcoin policies, including proposals for a national crypto reserve. While Texas acts independently, its leadership could inspire states like Wyoming (already known for its crypto-friendly legal framework) and others that have passed similar laws but have not yet executed purchases.
Outlook and Implications
The $10 million represents a small fraction of Texas' massive budget but carries symbolic weight. As the state transitions to direct self-custody, this could accelerate broader institutional inflows and signal maturity in the crypto sector. Analysts view it as a positive step toward mainstream adoption, though volatility remains a key risk.