States Jump on the Bitcoin Bandwagon

Texas made headlines by being the first state to buy bitcoin for its treasury. This move sparked a wave of similar actions across the country. Other states are now following suit, eager to get a piece of the cryptocurrency pie. The Lone Star State invested about five million dollars in the BlackRock iShares Bitcoin Trust. This fund has grown to manage over seventy-two billion dollars since it started in January 2024. The purchase was made on November 20, 2025, when the price of bitcoin was around ninety-one thousand three hundred thirty-six dollars per coin. With bitcoin now trading above ninety-five thousand dollars, the investment has already seen some gains. This initial investment is just half of the ten million dollars Texas plans to allocate for its Strategic Bitcoin Reserve. Officials see this as a temporary step while they work on setting up the necessary security measures to hold actual bitcoin. New Hampshire was actually the first to pass legislation allowing crypto reserves. Their law, passed last May, lets the state treasurer invest up to five percent of state funds in cryptocurrency ETFs and precious metals. Arizona has similar laws, and states like Massachusetts, Ohio, and South Dakota are considering their own crypto reserve bills.Interestingly, this trend isn't just a Republican thing. Despite most of the legislation being pushed by Republican lawmakers, the crypto industry has been backing candidates from both major parties. This shows how influential the crypto industry has become in politics. Justin Marlowe, a public policy professor at the University of Chicago, thinks these state-level initiatives are more about sending a message than making big financial moves. Governors want to show they're open to new technologies and business opportunities. This explains why politicians from different backgrounds are getting on board. States are also finding different ways to fund these reserves. Some use cash, while others use seized cryptocurrency, similar to the federal approach. President Donald Trump even signed an executive order to create a federal bitcoin reserve using seized crypto. Texas's move makes sense given its strong position in the crypto world. The state is a major player in bitcoin mining, thanks to its affordable and flexible power infrastructure. Beyond reserves, states are integrating crypto into their financial systems. New Hampshire, for example, approved a bitcoin-backed municipal bond issuance, a first in the U. S.