$10M In Bitcoin: Texas Breaks From IBIT To Build Its Own BTC System

A public website showing real-time Bitcoin holdings and valuations will be required from whichever firm wins the contract — a transparency measure that sets Texas apart from most institutional holders.

The state’s comptroller office released the requirement last Thursday alongside the announcement of a new advisory committee formed to guide the reserve’s operations.

Going Direct

Texas has been sitting on $10 million worth of BlackRock’s iShares Bitcoin Trust, a spot ETF used as a temporary position while the state worked out a longer-term plan.

That plan is now taking shape, and it means moving away from ETF exposure entirely toward Bitcoin held directly in the state’s name.

The Texas Comptroller of Public Accounts issued a request for proposals on May 7, calling for a custody and liquidity provider to handle the transition.

The winning firm will have 60 days after contract signing to move the existing IBIT holdings into directly custodied Bitcoin.

The scope of work goes well beyond simply storing coins. According to the procurement document, the provider must handle acquisitions, sales, ongoing management, and reporting — covering the full range of tasks needed to run a functioning state-level Bitcoin reserve.

Who Will Advise

Acting Comptroller Kelly Hancock named four people to the Texas Strategic Bitcoin Reserve Advisory Committee. They are Laurie Dotter, a veteran investment executive; Jamie McAvity, founder and CEO of Cormint Data Systems; Carla Reyes, a digital asset law professor at Southern Methodist University; and Gary Vecchiarelli, president and CFO of CleanSpark.

The committee’s role covers custody arrangements, risk management, and how the state reports performance to lawmakers. It will also weigh in on broader investment strategy for the reserve going forward.

Officials said the reserve could eventually hold assets beyond Bitcoin. The RFP language leaves the door open to other large-cap cryptocurrencies, though no specifics were named.

A Reserve Built On Law

The reserve was created through state legislation backed by supporters who argued Bitcoin could act as a buffer against inflation and economic swings over time. Texas allocated $10 million to fund it, using IBIT as a bridge position from the start.

The public transparency website is among the more unusual features of the plan. Texas would essentially be publishing a live ledger of its crypto holdings, updated in real time, accessible to anyone.

Proposals from interested custody firms are being accepted through the state’s procurement portal.

Featured image from Pexels, chart from TradingView