Texas Becomes First U.S. State to Buy Bitcoin as Adoption Grows

Texas made history as the first U.S. state to invest in Bitcoin for its treasury. On November 20, it bought $10 million worth of the cryptocurrency and created a Strategic Bitcoin Reserve. This signals increasing use of digital assets by governments. The amount is small compared to corporate treasuries, but it shows public institutions are willing to try cryptocurrency.

Texas New Bitcoin Treasury

Texas executed a Bitcoin purchase through BlackRock’s spot Bitcoin ETF, IBIT, at an average price of $87,000 per BTC. Lee Bratcher, president of the Texas Blockchain Council, confirmed the transaction on X, noting the Texas Treasury team’s careful attention to market conditions.

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

The state used $5 million of the $10 million allocation through the ETF while building the setup for self-custody. Bratcher said self-custody will let Texas hold Bitcoin directly in the future, following the Strategic Bitcoin Reserve plan. For now, the ETF provides a safe and easy way to invest.

Comptroller Kelly Hancock and the treasury team helped guide the decision, tracking market trends to ensure a secure and timely purchase. The move comes after Texas officially named Bitcoin a strategic reserve asset.

Experts see this as an important step in how governments approach digital assets. Pierre Rochard, CEO of The Bitcoin Bond Company, said it shows a shift from caution to active investment. Texas may inspire other states to try similar strategies.

A Strategic Moment for Bitcoin Buying

Texas made its purchase during a period of market pullback. Many analysts consider moments like this ideal for institutional entry. The dip helped the state secure Bitcoin at favorable prices, a move that may deliver strong long-term results.

Eric Trump and other public figures have said that weak markets can be good times to build Bitcoin positions. With more institutions and governments getting involved, Bitcoin is gaining more trust as a real investment asset.

There is precedent for this trend. In 2024, Wisconsin’s state investment board invested nearly $100 million in IBIT shares, showing that public funds are being directed toward digital assets. Texas is taking a careful approach but is clearly planning for the future.

Future Expansion Beyond Bitcoin

Bitcoin is the main focus right now, but Texas has hinted at bigger crypto goals. Senator Charles Schwertner has mentioned that Ethereum could be added to reserves if it holds a market cap above $500 billion for at least two years. This shows a balanced interest in diversifying within the crypto market.

Governor Gregg Abbott has approved a state-managed Bitcoin fund, creating a model for digital asset oversight. The rules for adding assets focus on large-market-cap coins, helping Texas stay responsible while exploring new technology.

If Texas expands reserves to include Ethereum and similar assets, it could guide how governments use crypto alongside traditional holdings. It would demonstrate early, regulated adoption that blends responsibility with new technology.

Why Does It Matter?

Texas is signaling a shift in how public finance might evolve in the U.S. The state’s official purchase of Bitcoin demonstrates a willingness to adopt new asset classes. A modest investment can still carry weight when it is backed by a government entity. This could lead more states to look at cryptocurrency as confidence continues to grow.