Texas has officially become the first state in the US to purchase and hold Bitcoin (BTC), acquiring $5 million worth of BlackRock’s iShares Bitcoin Trust (IBIT) and approving an additional $5 million for direct, self-custodied BTC. This initiative arises at a surprising time of market decline characterized by ETF outflows, institutional caution, and stalled legislative efforts nationwide.
In this week’s Byte-Sized Insight episode, we delve into Texas’s proactive stance while many others have withdrawn, exploring what this timing indicates about the state’s long-term outlook on digital assets.
Earlier this year, over two dozen US states considered or debated legislation permitting public treasuries to hold Bitcoin or other digital currencies. However, these initiatives largely slowed or fizzled out as prices fell and political support dwindled.
In stark contrast, Texas accelerated its efforts. Its Bitcoin acquisition marks the first under the Texas Strategic Bitcoin Reserve Act, enacted in June 2025, reflecting a decisive entrance into digital finance at a time when competitors hesitated.
Texas’s Longstanding Affinity for Bitcoin
Governor Greg Abbott has shown public support for Bitcoin for over a decade. In a 2014 campaign video mentioned in the podcast, Abbott stated, “Bitcoin is a new and decentralized digital cryptocurrency. It enables instant financial transactions safely and securely.”
Related: As US Bitcoin Reserve stalls, Chainalysis flags $75B in seizable crypto
This support continued with Abbott asserting in a 2022 discussion with the Texas Blockchain Council that Texas should lead blockchain innovation, emphasizing, “Texas is getting involved early on in this process because we see the future of what Bitcoin and what blockchain means to the entire world.”
A Strategic Long-Term Move
Lee Bratcher, president of the Texas Blockchain Council, views the state’s timing as deliberate. During the podcast, he indicated that Texas is positioning Bitcoin as a long-term strategic asset:
“Texas is in this for the long haul … this is not a short-term investment … we’re looking at things in decades rather than years.”
Bratcher further highlighted that Texas’s economic environment, including abundant energy resources, a business-friendly regulatory framework, and rapidly expanding urban centers, makes it a uniquely strong candidate for pioneering sovereign-level Bitcoin exposure.
What remains to be determined is whether Texas’s actions will rejuvenate interest in digital assets at the state level nationwide or simply reinforce its status as a digital-asset pioneer.
To listen to the complete discussion on Byte-Sized Insight, catch the full episode on Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. And be sure to explore Cointelegraph’s extensive range of other shows!
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