Texas has taken a significant step toward creating a state-level Bitcoin reserve by purchasing $5 million worth of BlackRock’s iShares Bitcoin Trust. The move is the first action in a broader $10 million legislative initiative designed to establish a strategic cryptocurrency holding, potentially making Texas the first U.S. state to do so.

Lee Bratcher, president of the Texas Blockchain Council, publicly confirmed the state’s purchase last week.

Laying the Groundwork for Direct Ownership

According to sources familiar with the matter, this purchase is a temporary allocation while Texas finalizes the operational guidelines for holding Bitcoin directly. The state recently concluded an information-gathering phase, soliciting input from the crypto industry on best practices for custody, security, and governance of a digital asset reserve.

Following this consultation, officials are expected to issue a formal request for proposals to select a dedicated custodian and finalize the framework for managing the reserve.

A Growing Trend Among US States

Texas isn’t alone in exploring state-level crypto investments. Michigan has also gained Bitcoin exposure through similar products in its public-employee retirement funds, while Wisconsin sold a $350 million allocation in May. Other states are in earlier stages of development.

New Hampshire passed legislation authorizing a Bitcoin reserve, though no purchases have been made. The state’s Business Finance Authority did, however, authorize a $100 million Bitcoin bond to finance a private-sector economic development fund. Meanwhile, Arizona passed a law directing its state-held unclaimed cryptocurrency assets into a dedicated reserve, establishing a foundation for future accumulation.

These state-level initiatives coincide with interest at the federal level. The Trump administration had issued an executive order to begin planning for a national Bitcoin investment, but officials involved in the effort are awaiting congressional authorization to proceed.