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The second-largest US state by population has launched a new crypto reserve and seeded it with millions of dollars in Bitcoin (BTC).
Texas has become the first state in America to purchase Bitcoin and hold it as a reserve asset, reports the Associated Press.
Acting Texas Comptroller Kelly Hancock says in a statement,
“The Texas legislature passed a bold mandate to create the nation’s first strategic Bitcoin reserve. Our goal for implementation is simple: build a secure reserve that strengthens the state’s balance sheet. Texas is leading the way once again, and we’re proud to do it.”
The state’s legislature authorized a total of $10 million in spending on Bitcoin, a small portion of the state’s total $338 billion annual budget.
The state’s initial purchase of the Bitcoin occurred on November 20th at a price of $91,336 per coin.
Lee Bratcher, president of the Texas Blockchain Council, believes the investment will pay off in the long term.
“It’s only a 16-year-old asset, so the volatility, both in the up and down direction, will smooth out over time. We still want it to retain some of those volatility characteristics because that’s how we could see those upward moves that will benefit the state’s finances in the future.”
Arizona and New Hampshire have also passed laws to create similar Bitcoin treasury reserves, but have not yet purchased any digital assets.
Meanwhile, Wisconsin and Michigan purchased crypto last year as pension fund investments.
Bitcoin is trading at $92,311 at time of writing, up 2.5% in the last 24 hours.
