Texas Keeps Faith in Bitcoin Despite $3.38 Million Loss

Texas's $10 million Bitcoin investment is still in place despite the decline in value. The state's Treasury Safekeeping Trust Company, which oversees the Texas Strategic Bitcoin Reserve, reported no changes to its position in the BlackRock iShares Bitcoin Trust (IBIT) during the second quarter. This means that even as the market value of the stake fell to around $6.62 million, Texas maintained its original investment of 197,844 shares.

The decline in value was significant, with the net asset value per share falling by 13.31% to $33.48 at the end of June from $38.62 at the end of March. This translates to a loss of around $980,000 based on BlackRock's reported NAV. However, Texas did not reduce its exposure to the ETF despite the decline in Bitcoin prices.

The state's decision to maintain its investment in IBIT is likely due to its goal of establishing direct Bitcoin custody. The Strategic Bitcoin Reserve was allocated $10 million for this purpose, and Texas has been using BlackRock's ETF as an interim vehicle while preparing for the transition.