Texas could potentially invest up to $2.1B in Bitcoin if it allocates 10% of its treasury fund

Texas Governor Greg Abbott signed the “Bitcoin Reserve Bill” SB 21 into instrumentality connected June 21, allowing the authorities to put an unlimited magnitude of wealth from the state’s money into Bitcoin (BTC).

SB 21 creates the Texas Strategic Bitcoin Reserve and lets the Comptroller bargain BTC truthful agelong arsenic the asset’s marketplace headdress exceeds $500 billion, a threshold that lone Bitcoin presently meets.

$2.2B allocation

With the connection signed into law, Texas became the 3rd authorities successful the US with an authoritative Bitcoin reserve, joining New Hampshire and Arizona. 

Nothing successful the statute caps allocations, meaning lawmakers could due the afloat equilibrium of the Economic Stabilization Fund. The ESF closed fiscal 2024 with $21 cardinal successful currency and investments, according to the Comptroller’s yearly currency study and supplemental ESF information sheet.

If legislators way the maximum, Texas unsocial could go the largest public-sector Bitcoin holder successful the US. The authorities could funnel up to $2.1 cardinal successful Bitcoin if it decides to allocate up to 10% of its fund successful BTC, arsenic Arizona had intended to with its failed bill.

Together with New Hampshire, the full authorities allocations could scope astir $2.2 billion.

Governor Kelly Ayotte signed House Bill 302 connected May 6, authorizing the treasurer to spot immoderate integer plus that has a marketplace capitalization supra $500 cardinal into a strategical reserve.

The statute caps holdings astatine 5% of the state’s Revenue Stabilization Reserve Account. New Hampshire’s latest bond-offering documents database an relationship of $292.5 cardinal for fiscal 2023, with the BTC concern ceiling representing astir $14.6 million.

Arizona measure fails

Arizona’s Bitcoin and Digital Asset Reserve Fund became instrumentality connected May 7 via House Bill 2749. The measurement directs unclaimed oregon seized integer assets to a state-run wallet, which tin beryllium staked oregon utilized successful airdrops, with the proceeds returning to the fund.

However, determination is nary study to day connected the magnitude of crypto seized by Arizona.

The SB 1373 failed connected May 12 aft Hobbs’ veto. The connection would licence the treasurer to deploy up to 10% of the Budget Stabilization Fund (BSF) into BTC erstwhile enacted.

Legislative fund writers task the BSF astatine astir $1.5 cardinal for fiscal 2025, implying a prospective Bitcoin allocation adjacent $150 million. 

As a result, if a akin measure is approved successful Arizona, the concern magnitude successful Bitcoin would beryllium boosted to implicit $2.3 billion.

The station Texas could perchance put up to $2.1B successful Bitcoin if it allocates 10% of its treasury fund appeared archetypal connected CryptoSlate.