The State of Texas becomes the first state to begin a strategic Bitcoin reserve. The state comptroller bought $5 million worth and plans to double that amount in the months ahead. Two other states have passed similar bills, like this in the legislature, New Hampshire and Arizona, but Texas is th e first state to make an actual transaction. This is a volatile digital asset. At its peak, it was close to $126,000 per Bitcoin. Texas bought in at roughly $91,000. On Monday, it was approximately $86,000 per coin. Texas lawmakers made the move this spring, allocating $10 million from a $340 billion state budget to the investment. “0.0004% of the Texas budget. It’s not a significant dollar amount for the state of Texas,” said Lee Bratcher from the Texas Blockchain Council. The new law was a goal for Bratcher this past legislative session. He told NBC 5 on Monday that it’s similar to stockpiling gold and also signals that the growing “Y’all Street” in Dallas has state support and may be a hub for the technology and finance sectors in the years ahead. “Not only does the state get to invest in an asset that has been appreciating and is one of the most scarce assets in the history of the world, but it also sends a strong economic development signal at the same time,” said Bratcher. “Of course, Bitcoin’s volatility has been in both directions, but over time it is generally on the upward trend,” said Bratcher, “With the Texas Stock Exchange and all of the financial services and capital formation activity in Dallas, it just makes sense for Texas to have a reserve of a scarce asset like Bitcoin.” Bitcoin is created, or “mined,” by at least 27 facilities across Texas, where computers run day and night solving mathematical problems and creating a digital file that people can buy. Critics are concerned about its energy-intensive environmental impacts, volatility, and the use of taxpayer dollars to purchase a risky asset. “The fluctuations on this stuff are insanity. Everything that we’ve seen from this president and beyond has been nothing more than market manipulation for the few,” said Sen. Roland Gutierrez, D-San Antonio, during debate on the floor of the Senate this past spring. “Creating some kind of reserve for a currency that the vast majority of Texans don’t have is concerning. Not 99% of them, not 99.99% of Texans have this currency,” said Gutierrez. The state’s accountant made the transfer through a BlackRock ETF. They’re calling it a “placeholder” investment until they find a long-term home. The Comptroller’s Office and state lawmakers will be watching this cryptocurrency reserve because they may add more money to it in the 2027 legislative session. In the spring, the measure did not fall along partisan lines. A group of Republicans and Democrats voted against it in both the Texas House and Texas Senate. ...read more read less