Texas Makes History: First State to Purchase Bitcoin
Texas has become the first state in the US to buy Bitcoin for its state treasury. On the 20th of November, the state purchased $10 million in Bitcoin, kicking off the state’s Strategic Bitcoin Reserve. This purchase could signify the first of many for the United States, as this action swings government attitudes toward cryptocurrency to the positive.
Texas Treasury’s Strategic Bitcoin Move
Texas purchased the Bitcoin through BlackRock’s spot Bitcoin ETF, IBIT. The average purchase price was $87,000. Lee Bratcher, President of the Texas Blockchain Council, explained that the purchase was due to the Texas Treasury monitoring Bitcoin for a prolonged period.
This has Ted to Bratcher stating that the state’s investments team headed by Comptroller Kelly Hancock, carefully monitored the state of the market to make this decision.
Texas ultimately plans to self-custody its Bitcoin. However, the Texas treasury chose the route of an ETF first. This route represents a compliant and accessible entry point for the Texas treasury while it works on its ETF custody.
The state was able to mitigate several exposure risks associated with cryptocurrency by going the ETF route, which allowed them to stay within the confines of traditional finance.
Legislative Acknowledgement and Strategic Positioning
Texas’ most recent legislation recognizing cryptocurrency as a strategic reserve asset is the most important as it is the most recent when it comes to asset incorporation. By including Bitcoin in treasury holdings, Texas claims and defends the title of first in the nation in the adoption of digital assets by state governments.
This helps them justify influence over competitors when it comes to potential relationships with virtual currency and institutional investments in the U.S.
Bitcoin Pullback is Texas Opportunity
The purchase made by Texas is most controversial and goes against the negative sentiment Bitcoin has in leasing contracts. Eric Trump, who we quote from coinroop, likely is in the camp of promoting negative sentiment as he claims Bitcoin is “the greatest of time” and every time there is price correction, enter, which to most rational individuals simply screams pump and dump. In this case, we expect Texas to make strategic long-term bets based on this sentiment, as it only reinforces their ability to purchase Bitcoin.
Forecasting Potential of Texas
Texas foresees a future of proudly becoming a nation of cryptocurrency and digital assets. In the strategic adoption of Bitcoin by using it as a currency, Texas has placed the state in the spotlight to act first and gain cryptocurrency. Should the momentum in the crypto market continue, Texas has placed itself to influence many other states to act, no doubt in the public sector, and digital assets.
Conclusion
To finish, Texas’ tactics with Bitcoin are a first for state government involvement with cryptocurrency. Texas has shown a willingness to incorporate digital assets into governmental spendin by integrating public finance with cryptocurrencies.
Texas has shown that planning, legislative backing, & market foresight goes into public finance in a digital age while redefining public treasury management.
