Texas has become the first state in the United States to actually purchase Bitcoin for a state reserve, buying $5 million worth of the volatile cryptocurrency in a move that has already drawn both praise and criticism.
The Texas Comptroller’s Office completed the transaction in the spring, and officials say the state plans to double the purchase in the months ahead.
While New Hampshire and Arizona have both passed similar bills, Texas is the first state to carry out an actual Bitcoin purchase.
Bitcoin’s price has fluctuated dramatically since its peak near $126,000 per coin; Texas bought at roughly $91,000, and on Monday the price was about $86,000 per Bitcoin.
The investment was funded by a $10 million allocation from the state’s $340 billion budget.
“0.0004% of the Texas budget. It’s not a significant dollar amount for the state of Texas,” said Lee Bratcher from the Texas Blockchain Council.
Bratcher told NBC 5 Monday that the move is similar to stockpiling gold and that it signals support for Dallas’s emerging “Y’all Street,” which he believes could become a hub for technology and finance.
“Not only does the state get to invest in an asset that has been appreciating and is one of the most scarce assets in the history of the world, but it also sends a strong economic development signal at the same time,” said Bratcher.
“Of course, Bitcoin’s volatility has been in both directions, but over time it is generally on the upward trend,” said Bratcher, “With the Texas Stock Exchange and all of the financial services and capital formation activity in Dallas, it just makes sense for Texas to have a reserve of a scarce asset like Bitcoin.”
Bitcoin is mined by at least 27 facilities across Texas, where computers run continuously to solve mathematical problems and create the digital file that people can buy.
Critics point to the energy‑intensive nature of mining, the asset’s volatility, and the use of taxpayer dollars to purchase a risky commodity.
“The fluctuations on this stuff are insanity. Everything that we’ve seen from this president and beyond has been nothing more than market manipulation for the few,” said Sen. Roland Gutierrez, D‑San Antonio, during debate on the floor of the Senate this past spring.
“Creating some kind of reserve for a currency that the vast majority of Texans don’t have is concerning. Not 99% of them, not 99.99% of Texans have this currency,” said Gutierrez.
The state’s accountant completed the transfer through a BlackRock ETF, describing the purchase as a “placeholder” investment until a long‑term home is found.
Comptroller officials and lawmakers will monitor the reserve closely, as they may add more funds to it during the 2027 legislative session.
During the spring, the measure did not fall along partisan lines; a group of Republicans and Democrats voted against it in both the Texas House and Texas Senate.
With the first Bitcoin purchase now on record, Texas sets a precedent for other states while the debate over the use of public funds for cryptocurrency continues.
Key Takeaways
- Texas bought $5 million of Bitcoin and plans to double the reserve.
- The purchase represents the first state‑level Bitcoin reserve in the U.S.
- Critics question the use of taxpayer money for a volatile, energy‑intensive asset.
As Texas moves forward, the state will decide whether the Bitcoin reserve becomes a long‑term financial strategy or a short‑term experiment, while other states watch closely.
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