On November 20, 2026, Texas made history by becoming the first U.S. state to purchase Bitcoin for its Strategic Reserve. The acquisition of $5 million was executed through BlackRock's iShares Bitcoin Trust (IBIT) at a price of roughly $87,000 per Bitcoin, as disclosed by Lee Bratcher, President of the Texas Blockchain Council. This marks a pivotal moment for state-level adoption of Bitcoin as a fiscal asset.
Details and Background of Texas' Bitcoin Purchase
The purchase was made via BlackRock's spot ETF while the state finalizes plans for self-custody. Texas had previously explored strategic Bitcoin legislation, with State Representative Giovanni Capriglione filing a bill to create a Strategic Bitcoin Reserve. The bill proposed buying and holding Bitcoin as a strategic asset in cold storage for at least five years, allowing resident donations, and enabling state agencies to accept and convert cryptocurrencies to Bitcoin. It also mandated annual audits and transparency. The bill, modeled after a federal proposal by President Donald Trump and Senator Lummis, was signed into law by the Texas governor in June 2026, establishing the state's Strategic Bitcoin Reserve.
Lee Bratcher, President and Founder of the Texas Blockchain Council, an industry association with over 100 member companies, championed the legislation through the state Senate. He stated that Texas will eventually self-custody Bitcoin, but the initial allocation used the IBIT ETF while the RFP process unfolds.
Bitcoin's price currently trades near $87,500, roughly 30% below its all-time high. Institutional interest is accelerating: Harvard University's endowment 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 Bitcoin ETF exposure.
Other States Show Interest in Buying Bitcoin
Texas is not alone. Capriglione's earlier bill detailed a reserve with cold storage, donations, and audit requirements. Earlier this month, New Hampshire became the first government worldwide to approve a $100 million Bitcoin-backed municipal bond. The state's Business Finance Authority (BFA) authorized a conduit bond where private companies can borrow against over-collateralized Bitcoin held in custody, with about 160% collateral. Automated liquidation protects bondholders, and fees plus Bitcoin appreciation fund the state's Bitcoin Economic Development Fund. New Hampshire and Arizona previously created Strategic Bitcoin Reserves.
These developments indicate a rapid adoption of Bitcoin as a reserve tool at the state level, from direct ETF purchases to innovative bond structures, further integrating crypto with public finance.