Texas Makes History: First U.S. State to Officially Add Bitcoin (BTC) to Its Balance Sheet
Texas just flipped the script on traditional finance—by becoming the first U.S. state to allocate treasury funds to Bitcoin. Move over, gold; digital assets are now part of sovereign balance sheets.
Why this matters: When a state with a GDP larger than most countries bets on BTC, it’s not just a nod to crypto—it’s a middle finger to monetary stagnation. Politicians might still debate it, but Texas is putting capital where its conviction is.
The irony? Wall Street still charges 2% fees for underperforming hedge funds while states like Texas bypass middlemen entirely. Bullish.
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Texas Governor Greg Abbott has signed into law “Senate Bill 21” that directs the state to establish a Bitcoin reserve managed independently from its main treasury, effectively creating a publicly funded crypto reserve.
The Texas government has begun funding the bitcoin reserve, appropriating $10 million to immediately purchase the largest cryptocurrency by market capitalization. While New Hampshire was the first U.S. state to pass legislation to create a strategic Bitcoin reserve, Texas is the first to set aside money and actually start purchasing BTC.
Several other states are debating whether to acquire cryptocurrencies with taxpayer money.
Long-Term Holding?
The foray into BTC among American states comes months after the Trump administration announced the creation of a national cryptocurrency reserve at the federal level. However, the federal crypto reserve is being funded in budget-neutral ways such as through crypto asset seizures or by issuing crypto bonds.
In Texas, the legislation marks a shift in how states may begin treating cryptocurrencies and other digital assets. Texas lawmakers say they see Bitcoin not as a speculative investment but as a sovereign financial instrument worth holding long-term. The price of BTC has gained 7% this year.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 14.74% in the last 12 weeks.
