Texas Becomes the First State in the U.S. to Establish a Bitcoin Reserve Fund

On June 24, 2025, Texas officially became the first state in the United States to establish a publicly funded Strategic Bitcoin Reserve Fund, with an initial allocation of up to $10 million to purchase Bitcoin (BTC).

Unlike Arizona and New Hampshire—two other states that have passed laws related to Bitcoin reserve funds—Texas has gone further by not only approving the fund but also committing to use public budget for investment and establishing an independent management structure. The Texas Strategic Bitcoin Reserve Fund will be operated completely separate from the state treasury, ensuring flexibility and protecting the fund from budget fluctuations.

The Bitcoin Reserve Fund is designed to protect the state’s finances against inflation and enhance economic resilience. According to Senator Charles Schwertner, Bitcoin is viewed as a “long-term strategic asset,” similar to gold or real estate, with superior potential in the context of traditional assets like savings accounts that yield low returns. Only cryptocurrencies with an average market capitalization of at least $500 billion over the last 24 months will qualify for investment by the fund—currently, only Bitcoin meets this criterion.

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The fund will be financed through legislative budgets, voluntary contributions, and profits from investments. Bitcoin assets must be stored in cold storage for at least five years to ensure safety, and they will be transparently monitored through biannual financial reports.