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CryptoIntelligence 2025-06-22 18:47:57

Texas Establishes State-Run Bitcoin Reserve with Passage of SB21

Texas Governor Greg Abbott has officially signed Senate Bill 21 (SB21), creating the Texas Strategic Bitcoin Reserve, a state-operated fund that will hold Bitcoin as a long-term financial asset. The move makes Texas the first U.S. state to not only legalize a Bitcoin reserve but also to directly allocate public funds toward building digital asset holdings. Unlike traditional state investments, the reserve will function outside Texas’ general treasury, serving as a hedge against inflation and a new tool to bolster the state’s financial resilience. Strict Criteria Ensures Bitcoin-Only Holdings According to the bill, only assets with a market capitalization exceeding $500 billion are eligible for inclusion in the fund. Currently, Bitcoin is the only cryptocurrency meeting that requirement. The Texas Comptroller of Public Accounts will manage the fund with guidance from a three-member advisory board composed of cryptocurrency investment experts. Reserve Can Grow Through Airdrops and Donations The legislation allows for the Bitcoin reserve to expand through various mechanisms beyond direct purchases. These include blockchain forks, investment gains, and even airdrops or public donations. A transparency provision mandates that a comprehensive report on the fund’s holdings and performance be published every two years. Legal Protections Cement Reserve Independence The passage of SB21 follows the earlier signing of House Bill 4488, which protects the reserve from being transferred into the general revenue fund. This measure ensures the fund remains insulated from broader budgetary shifts and fiscal pressures. Texas now joins Arizona and New Hampshire as the third U.S. state to approve a Bitcoin reserve policy. However, Texas is unique in that it is the first to use state funds and establish an independent structure for its holdings. Corporate Adoption of Bitcoin Continues to Grow Public interest in Bitcoin reserves is being mirrored in the corporate world. Nakamoto Holdings, a Bitcoin investment firm founded by David Bailey, a crypto adviser to former President Donald Trump, recently raised $51.5 million through a PIPE (private investment in public equity) transaction to increase its Bitcoin portfolio. Meanwhile, France’s Blockchain Group has added 182 BTC worth approximately $19.6 million to its reserves, bringing its total to 1,653 BTC. Growing Institutional Demand Signals Enduring Bitcoin Interest Recent data from BitcoinTreasuries.NET shows that more organizations have begun holding Bitcoin as a treasury asset over the past month. This aligns with a broader trend pioneered by Michael Saylor’s Strategy, which has been at the forefront of public company Bitcoin adoption. The Texas Bitcoin reserve may mark a pivotal step in further institutionalizing Bitcoin’s role within public finance.

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