Texas will invest public funds in a Bitcoin reserve

Governor Greg Abbott signed SB21 into law, creating the Texas Strategic Bitcoin Reserve — the first state fund in the U.S. to directly allocate public money into Bitcoin as a long-term asset.

Texas Reserve Operates Outside the General Treasury

Texas Governor Greg Abbott has signed Senate Bill 21 (SB21), authorizing the creation of the Texas Strategic Bitcoin Reserve. This will be the first publicly funded crypto reserve in the U.S.

The reserve will operate independently from the state’s general treasury. It is designed to improve financial resilience and hedge against inflation. Only assets with a market cap above $500 billion may be included—Bitcoin is the only one that qualifies today.

Fund May Receive Donations and Will Report Every Two Years

The reserve will be managed by the Texas Comptroller of Public Accounts. An advisory board of three crypto investment experts will help guide the fund’s strategy.

In addition to direct purchases, the fund may receive airdrops, forks, gains from investments, and public crypto donations. A report on its holdings and performance will be published every two years. HB4488 was also passed to protect the fund from being reabsorbed into the state budget.

Public Institutions and Firms Keep Buying Bitcoin

Texas becomes the third U.S. state to pass a Bitcoin reserve law, following Arizona and New Hampshire. However, it is the first to allocate actual public funds and build a dedicated infrastructure.

Meanwhile, companies continue adding BTC to their balance sheets. Nakamoto Holdings raised $51.5 million for Bitcoin acquisitions. France’s The Blockchain Group purchased 182 BTC, bringing its total to 1,653 BTC.