Texas Adds Bitcoin to State Reserves

Texas Governor Signs SB21, Establishing Official State Bitcoin Reserve

Texas Governor Greg Abbott has officially signed Senate Bill 21 (SB21), paving the way for the creation of the Texas Strategic Bitcoin Reserve. This landmark legislation authorizes a state-managed fund dedicated to holding Bitcoin (BTC) as part of Texas’s long-term financial assets strategy.

The newly formed Bitcoin reserve will operate separately from Texas’s general treasury system. According to the bill text, its primary purpose is to enhance the state’s financial resilience and provide a potential hedge against inflation. Importantly, SB21 mandates that only assets with a market capitalization exceeding $500 billion can be included—at present, Bitcoin is the only asset meeting this requirement.

The Texas Comptroller of Public Accounts will oversee the administration of the reserve. Supporting this effort will be an advisory committee consisting of three seasoned crypto investment professionals, ensuring that the reserve’s strategies align with best practices in digital asset management.

Texas Bitcoin Reserve May Grow Through Airdrops, Forks, and Donations

Beyond direct Bitcoin acquisitions, the Texas Strategic Bitcoin Reserve can increase its holdings through a variety of channels. These include gains from forks, airdrops, public donations, and traditional investment returns. To ensure transparency, the state will publish a public report on the reserve’s holdings and performance every two years.

SB21 builds upon earlier crypto-friendly legislation, such as House Bill 4488, which Governor Abbott previously signed. This law protects the Bitcoin reserve from being absorbed into the state’s general revenue fund, safeguarding it from fluctuations in budgetary priorities.

With this move, Texas becomes the third U.S. state to establish a legal Bitcoin reserve, joining Arizona and New Hampshire. However, Texas distinguishes itself as the first state to allocate public funds and build an independent structure specifically for Bitcoin holdings.

Public Companies Continue to Drive Bitcoin Adoption

The trend of Bitcoin adoption extends beyond state governments. A growing number of publicly traded companies are adding Bitcoin to their balance sheets, inspired by strategies championed by Michael Saylor’s Strategy (formerly MicroStrategy).

In a notable example, Nakamoto Holdings, founded by U.S. President Donald Trump’s crypto adviser David Bailey, recently raised $51.5 million through a private placement in public equity (PIPE) deal aimed at acquiring more BTC. Similarly, French tech firm The Blockchain Group, listed in Paris, expanded its Bitcoin portfolio last week by purchasing 182 BTC for approximately $19.6 million. This brings its total Bitcoin holdings to 1,653 BTC.