Texas is becoming the third U.S. state to establish a Strategic Bitcoin Reserve with Senate Bill 21, signed by Governor Greg Abbott on June 20, 2025, reflecting a growing state-level trend to integrate Bitcoin into financial systems, following federal proposals like Senator Cynthia Lummis’ bill to acquire 1 million BTC over five years.
This move aligns with a 2024 Reuters report indicating over 30% of global Bitcoin mining occurs in North America, yet 90% of mining hardware originates from China, highlighting a strategic pivot to reduce reliance on foreign supply chains amid U.S.-China trade tensions, as Chinese manufacturers like Bitmain begin U.S. production to avoid tariffs.
A 2023 study by Chainalysis estimated the U.S. government holds around 200,000 BTC (worth $21 billion at current prices) from criminal seizures, suggesting Texas could leverage existing federal stockpiles or market purchases, though volatility and cybersecurity risks, noted in a 2022 NIST report, pose challenges to long-term stability.
