Texas Launches First State-Funded Bitcoin Reserve Under SB 21
Texas Governor Greg Abbott signed Senate Bill 21, establishing the first state-funded Bitcoin reserve in the US, overseen by the Texas Comptroller and safeguarded from routine reallocations through companion bill HB 4488. The initiative aims to diversify the state’s portfolio, leverage Bitcoin’s decade-long outperformance of traditional assets, and enhance economic security. Detailed procedures for BTC acquisition, custody, and use will be released soon under Texas State Treasury oversight. The move aligns with President Trump’s federal executive order on strategic Bitcoin reserves and contrasts with other states that have abandoned similar plans due to volatility concerns. Corporate demand for Bitcoin is also rising: 223 public companies now hold over 819,000 BTC, led by MicroStrategy with 580,250 BTC, highlighting its role as a balance-sheet hedge.
Bullish
Establishing a state-funded Bitcoin reserve marks a significant institutional endorsement of BTC, likely boosting market confidence and attracting further public-sector and corporate investment. In the short term, news of government demand may trigger price rallies as traders anticipate increased buy pressure. Over the long term, Texas’s move could set a precedent for other states and sovereign entities, embedding Bitcoin more firmly in fiscal portfolios and supporting sustained upward momentum.