Financial reports or announcements from the Texas state government

Texas Proposes State-Managed Bitcoin Reserve, Following BlackRock's 2% Suggestion

Dec 13, 2024, 01:11 AM

Texas is taking a significant step towards integrating Bitcoin into its state financial strategy with a proposed bill for a state-managed Bitcoin reserve. Filed by Republican Rep. Giovanni Capriglione, the legislation aims to collect taxes, fees, and donations in Bitcoin, which would be held for at least five years. This initiative reflects Texas' leadership in digital innovation, especially given its high concentration of Bitcoin miners. The proposal does not allow the state to directly purchase Bitcoin but focuses on building a reserve through voluntary contributions. This move comes amidst a broader national interest in Bitcoin, with President-elect Donald Trump previously mentioning a federal Bitcoin reserve. BlackRock, the world's largest asset manager, has also suggested that a portfolio allocation of up to 2% in Bitcoin is 'reasonable' for investors, comparing it to the risk profile of mega-cap tech stocks in a traditional portfolio. Pennsylvania has introduced a similar proposal, and the Satoshi Action Fund has provided input into the Texas bill.