Texas Establishes First State-Backed Bitcoin Reserve

Texas makes history with a landmark law creating the United States’ first state-funded Bitcoin reserve, positioning itself at the forefront of digital asset adoption.

In a significant milestone for crypto adoption in government finance, Texas has become the first U.S. state to establish a publicly funded Bitcoin reserve. The move, formalized with the signing of Senate Bill 21 by Governor Greg Abbott on June 21, underscores the Lone Star State’s ambition to integrate Bitcoin into its financial strategy—at a time when many other states are retreating from similar efforts.

A New Kind of State Reserve

Unlike other proposals in states like Arizona and New Hampshire, which have explored adding digital assets to broader state portfolios, Texas is setting up a dedicated Bitcoin reserve fund, legally and structurally distinct from the state treasury. The fund will be overseen by Texas Comptroller Glenn Hegar, who will manage Bitcoin acquisitions and assess its role as a long-term strategic asset.

The initiative was spearheaded by Senator Charles Schwertner, who emphasized Bitcoin’s performance as a key factor in drafting the legislation. “We can buy land, we can buy gold; I think the state of Texas should have the option of evaluating the best performing asset over the last 10 years,” Schwertner said during the legislative process.

A companion bill, HB 4488, ensures the reserve’s legal protections, shielding it from standard fund reallocations and affirming its status even if Bitcoin isn’t purchased immediately. This legislative shield sets the Texas reserve apart as not just symbolic, but also structurally resilient.

Not Part of the Governor’s Core Agenda

Despite its significance, the Bitcoin reserve was not listed among Governor Abbott’s top legislative priorities. Its quiet passage contrasts with the broader trend in U.S. state politics, where many legislatures have recently backed away from embracing digital assets due to regulatory uncertainty and concerns about volatility.

Florida, once seen as a crypto-friendly state, scrapped its own crypto legislation in May. It joined a growing list of states—including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma—that have recently halted or reversed efforts to institutionalize digital assets.

Most notably, Arizona’s House Bill 1025, which had advanced further than any comparable bill nationwide, was vetoed on May 3 by Governor Katie Hobbs. Labeling digital assets “untested investments,” Hobbs derailed the state’s proposed Digital Assets Strategic Reserve Act, reflecting broader skepticism about crypto’s long-term viability in government portfolios.

Trump Administration Pushes Federal Bitcoin Reserve

At the federal level, crypto policy has taken a different turn. President Donald Trump signed an executive order to create a national strategic Bitcoin reserve, signaling a significant shift in Washington’s stance on digital assets. Although details remain sparse, the executive order aligns the federal government—at least symbolically—with Texas’ pro-Bitcoin direction.

The order is seen by many as a political gesture to appeal to pro-crypto voters and industries, especially amid a bullish market and increasing institutional involvement in Bitcoin.

Corporate Bitcoin Holdings Reach Record Levels

While states debate Bitcoin’s place in government portfolios, corporations have continued to accumulate the cryptocurrency at an unprecedented pace. According to data from BitcoinTreasuries.net, 223 public companies now hold Bitcoin, a sharp increase from 124 just days earlier. Together, these firms hold more than 819,000 BTC, representing roughly 3.9% of the total supply.

MicroStrategy leads the pack with 592,100 BTC, valued at approximately $60 billion. Other major holders include Marathon Digital Holdings and Tesla, both of which hold Bitcoin worth over $1 billion.

This corporate accumulation is partly fueled by Bitcoin’s recent rally, which saw prices reach an all-time high of $111,965 earlier in June—a 50% surge from early April. The price spike triggered a rush of capital raising, IPOs, and mergers across the digital asset sector, as firms sought to secure funding amid strong investor appetite.

Even after a market correction to $98,723 on June 22, reportedly linked to escalating tensions involving Iran, the buying trend remains strong. Analysts expect institutional accumulation to persist, bolstered by long-term conviction and favorable macroeconomic signals.

Strategic Implications for Bitcoin’s Legitimacy

Texas’ move to establish a Bitcoin reserve could have broader implications for how digital assets are perceived in public finance. By treating Bitcoin as a strategic asset on par with gold or real estate, the state is sending a powerful message about its belief in the long-term value and utility of decentralized assets.

Moreover, the legal protections built into the legislation create a template for other jurisdictions considering similar moves. Whether or not other states follow suit, Texas has set a precedent—both symbolically and structurally—for how governments might integrate Bitcoin into their financial infrastructure.

As crypto markets evolve and institutional adoption deepens, Texas’ pioneering step may well be remembered as the beginning of a broader shift in how public institutions engage with decentralized finance. Whether it’s a bold bet or a prescient strategy, one thing is clear: the future of Bitcoin in state finance has officially begun deep in the heart of Texas.