- Texas executed its first strategic Bitcoin purchase, deploying $5 million via BlackRock’s IBIT ETF.
- The state bought the dip at an average price of $87,000, with plans to transition to self-custody.
- This move operationalizes the “Texas Strategic Bitcoin Reserve,” allocating $10 million in total.
Texas has become the first U.S. state to execute a direct purchase of Bitcoin for its balance sheet. The state deployed $5 million into the asset on November 20, securing an average price of approximately $87,000. This initial tranche represents half of a confirmed $10 million allocation for the state’s new digital asset reserve.
The Strategy: IBIT Now, Self-Custody Later
The state executed this purchase via BlackRock’s IBIT ETF. However, Comptroller Glenn Hegar and the Treasury team view this as a temporary vehicle. Their ultimate goal is to establish a secure, state-managed self-custody framework for the reserve.
Texas has been one of the most active states in cryptocurrency legislation. Fourteen Bitcoin-related bills are already in progress, including several aimed at officially setting up a state Bitcoin reserve. This makes Texas the leading U.S. region in digital asset lawmaking.
State-Level Adoption: Texas vs. New Hampshire
Texas is not alone in exploring digital asset reserves. New Hampshire and Arizona already have Bitcoin reserve laws passed, allowing regulated state-level purchases when market conditions are suitable. Many of these laws require the chosen cryptocurrency to have a market cap above $500 billion, which currently limits eligible assets mainly to Bitcoin and, in some cases, Ethereum.
Related: Eric Trump Call American Bitcoin Mining Facility, ‘Living Proof’ of Crypto
On a national level, President Donald Trump has previously supported the idea of a U.S. strategic Bitcoin reserve. According to reports, 36 Bitcoin-related reserve bills were active across 19 states earlier this year.
Bitcoin Price Analysis: Support at $85K Holds
Texas’ entry into the market comes at a time when Bitcoin has been trading under pressure. The price has been hovering between support at $85,000 and resistance near $88,000, while larger resistance zones remain between $92,000 and $97,000.
Analysts have predicted that Bitcoin is still showing signs of broader weakness on higher timeframes, although oversold indicators on daily and three-day charts suggest a short-term relief rally is possible.
Related: Bitcoin Rebounds to $89,200, XRP Soars 11%, Global Market Tops $3.02T
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Source: https://coinedition.com/texas-buys-the-bitcoin-dip-first-u-s-state-to-start-building-a-btc-reserve/