Texas Governor Greg Abbott has signed Senate Bill 21 (SB21), officially establishing the Texas Strategic Bitcoin Reserve—making Texas the first state to manage Bitcoin as part of its official financial assets through a separate, protected fund.
The reserve aims to boost Texas’s long-term financial stability and act as a hedge against inflation, operating entirely independent of the state’s general treasury. According to the bill, only digital assets with a market capitalization above $500 billion are eligible for inclusion—a requirement that currently only Bitcoin (BTC) fulfills.
The Texas Comptroller of Public Accounts will manage the reserve with input from an advisory panel of three professional cryptocurrency investors. In addition to direct Bitcoin holdings, the reserve can expand through airdrops, donations, forks, and capital gains from its investments. To maintain accountability, the comptroller must publish a detailed report on the fund’s status and performance every two years.
The signing of SB21 builds on Governor Abbott’s previous approval of House Bill 4488, which legally shields the Bitcoin reserve from being diverted into Texas’s general revenue pool. This safeguard ensures the reserve remains dedicated to its original purpose, regardless of changing budget needs or political pressures.
With this legislation, Texas becomes the third U.S. state to pass a Bitcoin reserve law, joining Arizona and New Hampshire. However, unlike the other states, Texas stands out by committing state-managed funds and establishing a distinct structure for holding Bitcoin outside traditional treasury accounts.
This move reflects a growing trend of Bitcoin adoption by institutional and public entities. Corporate treasuries are increasingly adding BTC to their balance sheets, with Michael Saylor’s Strategy leading the charge. Recently, Nakamoto Holdings, founded by President Donald Trump’s crypto adviser David Bailey, raised $51.5 million through a private placement to purchase additional Bitcoin. Similarly, The Blockchain Group, a Paris-listed tech firm, acquired 182 BTC for $19.6 million, increasing its total reserves to 1,653 BTC.
As more states and companies embrace Bitcoin, Texas’s strategic reserve signals a new era of integrating digital assets into mainstream financial planning.
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