Texas has officially become the first US state to purchase and hold Bitcoin (BTC), acquiring $5 million worth of BlackRock’s iShares Bitcoin Trust (IBIT) and authorizing an additional $5 million for direct, self-custodied BTC. This decision comes during an unexpected market downturn characterized by ETF outflows, institutional caution, and stalled legislative efforts nationwide.
In this week’s Byte-Sized Insight episode, we delve into why Texas took this initiative while many others retreated and what this timing indicates about the state’s outlook on digital assets.
Earlier this year, over two dozen US states either introduced or debated bills to allow public treasuries to hold Bitcoin or other digital assets. However, most of these initiatives slowed or disappeared as prices fell and political interest diminished.
In contrast, Texas accelerated its efforts. Its Bitcoin acquisition is the first executed under the Texas Strategic Bitcoin Reserve Act, passed in June 2025, marking a bold advance into digital finance at a time when competitors hesitated.
Texas isn’t new to Bitcoin
Texas Governor Greg Abbott has shown public support for Bitcoin for more than a decade. In a 2014 campaign video referenced in the podcast, Abbott stated, “Bitcoin is a new and decentralized digital cryptocurrency. It facilitates instant financial transactions safely and securely.”
Related: As US Bitcoin Reserve stalls, Chainalysis flags $75B in seizable crypto
This support has continued over the years. In a 2022 discussion with the Texas Blockchain Council, Abbott explained why he thinks the state should spearhead blockchain innovation, stating, “Texas is getting involved early on in this process because we see the future of what Bitcoin and blockchain mean to the world.”
A long-term strategic play, not a short-term bet
According to Lee Bratcher, president of the Texas Blockchain Council, the state’s timing is deliberate. Speaking on the podcast, Bratcher remarked that Texas views Bitcoin as a multi-decade 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 also pointed out that Texas’s economic landscape, which features energy resources, a pro-business regulatory framework, and rapidly expanding urban centers, makes it a uniquely strong candidate for early sovereign-level Bitcoin exposure.
It remains to be seen whether Texas’s move will spark renewed interest in digital assets at the state level across the nation or simply reinforce its status as a digital-asset outlier.
To listen to the full conversation on Byte-Sized Insight, catch the episode on Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. Also, don’t miss Cointelegraph’s complete lineup of other shows!
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