On November 20, Texas became the first US state to buy Bitcoin for its strategic reserve, acquiring $5 million at about $87,000 per BTC, according to Lee Bratcher, president of the Texas Blockchain Council.
The purchase was made through BlackRock’s iShares Bitcoin Trust (IBIT) as the government finalizes plans for self-sufficiency.
The move signals growing state-level interest in Bitcoin as a reserve asset. Texas had previously explored strategic Bitcoin legislation last year and wanted to create a Bitcoin reserve without using taxpayer funds.
In June of this year, the Texas governor signed the legislation into law, creating a state strategic Bitcoin reserve.
Institutional investors are increasingly following suit. Harvard University’s endowment recently tripled its IBIT holdings to $442.8 million, making it the university’s largest publicly disclosed investment.
Emory University and Abu Dhabi’s Al Warda investments have also significantly increased exposure to the Bitcoin ETF.
Bitcoin’s price is currently trading near $87,500, about 30% below its all-time high. Lee Bratcher was the first to reveal this news.
“Texas will ultimately take care of bitcoin,” Bratcher said, “but while that RFP process is taking place, this initial allocation was made with BlackRock’s IBIT ETF.
Bratcher is the president and founder of the Texas Blockchain Council, a trade association with over 100 member companies and hundreds of individuals promoting Texas as a hub for Bitcoin and blockchain innovation.
He actively championed the state’s Bitcoin reserve legislation and worked on the ground to guide it through the state senate.
Texas isn’t the only state interested in buying bitcoin
In legislation examined last year, Texas State Representative Giovanni Capriglione filed a bill to create a Strategic Bitcoin Reserve for the state.
The legislation proposed that the state buy and hold bitcoin as a strategic asset, store it in cold storage for at least five years, allow residents to make donations and enable state agencies to accept and convert cryptocurrencies to bitcoin.
It also mandated transparency through annual audits and reports. Modeled after a federal proposal by President Donald Trump and Senator Lummis, the bill reflected the growing global interest in bitcoin.
Earlier this month, New Hampshire became the first government in the world to approve a $100 million Bitcoin-backed municipal bond. The state’s Business Finance Authority (BFA) approved the conduit bond, allowing private companies to borrow against oversecured Bitcoin held in custody, with the repayment risk resting solely on the collateral.
Borrowers must post about 160% of the bond’s value in Bitcoin, and automated liquidation protects bondholders if values fall. Fees and any BTC appreciation will fund the state’s Bitcoin Economic Development Fund.
This move follows New Hampshire and Arizona’s earlier creation of a strategic bitcoin reserve.