Texas Governor Greg Abbott has signed Senate Bill 21 (SB21) into law, officially greenlighting the creation of the Texas Strategic Bitcoin Reserve—a pioneering move that places Bitcoin on the state’s balance sheet as a long-term financial asset.
The reserve, distinct from Texas’ general treasury, will be managed by the Texas Comptroller of Public Accounts and overseen by an advisory committee of three crypto investment experts. According to the bill text, the fund is designed to bolster the state’s financial resilience and serve as a hedge against inflation.
Under SB21, only digital assets with a market capitalization above $500 billion are eligible for inclusion in the reserve—a threshold currently met only by Bitcoin. This effectively makes Bitcoin the sole candidate for the new state-managed crypto treasury.
Airdrops, Donations, and Public Transparency
The reserve is structured to accept more than just direct Bitcoin purchases. It can also grow through airdrops, hard forks, investment gains, and even public donations. In a bid to ensure transparency, a biannual public report will be issued detailing the fund’s performance and holdings.
Additionally, a separate bill, House Bill 4488, was signed into law to protect the Bitcoin reserve from being absorbed into the state’s general revenue pool. This legal safeguard ensures that the crypto fund remains insulated from changing budgetary needs.
Texas Leads as Other States Follow
With this move, Texas becomes the third U.S. state to pass a law establishing a Bitcoin reserve, following Arizona and New Hampshire. However, Texas distinguishes itself by being the first state to allocate public funds and create a standalone legal and financial framework for managing Bitcoin holdings.
Bitcoin Treasury Trend Grows Among Public Companies
Texas’ bold move comes amid a broader trend of entities adding Bitcoin to their balance sheets. On Friday, Nakamoto Holdings—founded by David Bailey, crypto adviser to former President Donald Trump—raised $51.5 million through a PIPE deal to buy more Bitcoin.
Meanwhile, France-based The Blockchain Group, listed in Paris, recently added 182 BTC worth approximately $19.6 million, bringing its total to 1,653 BTC.
Multiple organizations have expanded their Bitcoin reserves in recent weeks, signaling sustained institutional interest in Bitcoin as a treasury asset—a strategy popularized by Michael Saylor’s MicroStrategy.
