Texas became the first U.S. state to officially buy and hold Bitcoin (BTC) by acquiring BlackRock’s $5 million iShares Bitcoin Trust (IBIT) and authorizing another $5 million in direct, standalone BTC. The move comes at an unexpected time: a market downturn marked by ETF outflows, institutional caution and a stalled legislative effort across the country.
On this week’s episode of Byte-Sized Insight, we explore why Texas stepped in when many others pulled back, and what this moment suggests about the state’s long-term view of digital assets.
Earlier this year, more than two dozen U.S. states introduced or were debating bills that would allow public treasuries to hold Bitcoin or other digital assets. But most of these efforts have slowed or evaporated as prices have fallen and political appetite has waned.
Texas, on the other hand, picked up the pace. The Bitcoin purchase is the first transaction made under the Texas Strategic Bitcoin Reserve Act, passed in June 2025, marking a decisive shift toward digital finance at a time when competitors were hesitant.
Texas is not modern to Bitcoin
Texas Governor Greg Abbott has publicly supported Bitcoin for over a decade. In a 2014 campaign video mentioned in the podcast episode, Abbott said: “Bitcoin is a new and decentralized digital cryptocurrency. It enables safe and secure instant financial transactions.”
Related: As US Bitcoin Reserve Stalls, Chainalytic Indicates $75 Billion Crypto Grab Possible
This position was continued years later. In a 2022 conversation with the Texas Blockchain Council, Abbott explained why he believes the state should lead blockchain innovation, saying, “Texas is engaging in this process early because we see the future of what Bitcoin is and what blockchain means for the entire world.”
A long-term strategic play, not a short-term bet
For Lee Bratcher, president of the Texas Blockchain Council, the timing of the state’s release is not accidental. On the podcast, Bratcher noted that Texas is positioning Bitcoin as a strategic asset for many decades:
“Texas is in this for the long haul…it’s not a short-term investment…we’re looking at things over the course of decades, not years.”
Bratcher added that Texas’ economic landscape, which includes energy resources, an entrepreneurial regulatory environment and rapidly growing urban centers, makes it an exceptionally powerful candidate for early exposure to Bitcoin at the state level.
Time will tell whether Texas’ move reignites interest at the state level across the country or simply cements its status as an outlier in the digital asset space.
To listen to the entire conversation on Byte-Sized Insight, listen to the full episode on Cointelegraph Podcasts, Apple Podcasts Or Spotify. And don’t forget to check out the full range of other Cointelegraph programs!
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