Texas Purchases $5M in IBIT as Part of $10M Bitcoin Strategy

Highlights:

• Texas made history by buying $5 million in Bitcoin ETF for government reserves.
• The state plans another $5 million purchase and aims to hold Bitcoin directly.
• Texas is building secure custody systems to store Bitcoin safely under state control.

Texas has made history by becoming the first U.S. state to include Bitcoin in its government reserves. On November 20, the state purchased $5 million in shares of BlackRock’s Bitcoin exchange-traded fund (ETF) and plans an additional $5 million investment in self-custodied Bitcoin. Lee Bratcher, president of the Texas Blockchain Council, shared the news on X. State officials have not publicly shared any documents or statements confirming the purchase.

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CORRECTION: Texas purchased $5M on Nov. 20th. $10M is allocated from general revenue but not all $10M has been allocated.@BitcoinMagazine

— Lee ₿ratcher (@lee_bratcher) November 25, 2025

Texas Prepares Infrastructure for Direct Bitcoin Ownership and Management

Bratcher said the recent purchase is a temporary starting point. Meanwhile, Texas is developing the infrastructure to hold Bitcoin directly, a process that involves a request for proposal to select secure custody solutions and meet legal and technical requirements.

Once the self-custody system is ready, the state plans to move from the ETF exposure to holding Bitcoin directly, giving it full control and reducing reliance on third-party custodians. This approach allows Texas to start its reserve quickly while preparing for long-term ownership and secure management of the cryptocurrency. 

Texas recently asked the cryptocurrency industry for advice on setting up and managing a Bitcoin reserve. In September, the state issued a request for information to learn best practices. Several companies responded, sharing ideas on how to store Bitcoin safely, secure it, structure investments, and manage the reserve. 

Pierre Rochard, CEO of The Bitcoin Bond Company, said Texas’s move shows a big change in government views on Bitcoin. “In five years we went from ‘governments will ban bitcoin’ to ‘governments are only buying a small amount of bitcoin’. Hyperbitcoinization has happened, is happening, and will continue to happen,” he added.

SB 21 Enables Texas to Treat Bitcoin as a Long-Term Investment

This move marks a significant step in the U.S. state’s adoption of digital assets and demonstrates growing trust in Bitcoin for official reserves. This purchase is the first use of funds approved under SB 21, the law signed by Governor Greg Abbott in June. The legislation set up a Bitcoin reserve managed by the Texas Treasury Safekeeping Trust Company.

BREAKING: 🇺🇸 Texas Strategic Bitcoin Reserve officially signed into law. pic.twitter.com/5C0D1vI97j

— Watcher.Guru (@WatcherGuru) June 21, 2025

Lawmakers behind SB 21 designed the program to let Texas treat Bitcoin like other long-term investments. Senator Charles Schwertner, who sponsored the bill, said the state “should have the option of evaluating the best performing asset over the last 10 years.”

Other states have gained Bitcoin exposure through public-employee retirement funds. For example, Michigan has invested in similar products, and Wisconsin sold a $350 million allocation in May, according to public records. New Hampshire and Arizona are also exploring government crypto reserves, still in early stages. New Hampshire approved a Bitcoin reserve law, with no purchases yet, and recently authorized a $100 million Bitcoin bond for private-sector crypto projects.

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