Texas Makes Historic $5 Million Bitcoin Purchase as Metaplanet Doubles Down Despite Losses

Texas Leads State-Level Bitcoin Adoption

Texas has made history by purchasing $5 million worth of Bitcoin through BlackRock's iShares Bitcoin Trust (IBIT), marking the first time a U.S. state has gained exposure to Bitcoin through a spot ETF designated for a Strategic Bitcoin Reserve ^[1].

The transaction occurred on November 20th at an estimated price of $87,000 per Bitcoin, according to Texas Blockchain Council President Lee Bratcher, who first reported the acquisition ^[1]. The purchase represents a significant milestone in institutional Bitcoin adoption at the state government level.

State officials clarified that the IBIT investment is a temporary measure while Texas completes its request-for-proposal process to establish self-custody capabilities for digital assets. "Texas will eventually self-custody Bitcoin," Bratcher said, "but while that RFP process takes place, this initial allocation was made with BlackRock's IBIT ETF" ^[1].

The move follows legislation signed into law in June that established Texas's Strategic Bitcoin Reserve, authorizing the state to acquire and hold Bitcoin without using taxpayer funds ^[1]. Bratcher, whose organization represents more than 100 companies, worked with lawmakers to develop the legislation as it advanced through the state Senate ^[1].

Earlier proposals from State Representative Giovanni Capriglione included provisions for long-term cold storage requirements, annual audits, resident donation options, and mechanisms enabling state agencies to convert other cryptocurrencies into Bitcoin ^[1].

Metaplanet Expands Bitcoin Strategy Through Dual Financing Approach

While Texas takes its first steps into Bitcoin investment, Japanese firm Metaplanet is aggressively expanding its Bitcoin treasury strategy through a sophisticated dual-track financing model, securing $130 million in fresh capital to purchase additional BTC ^[2].

The company has established a $500 million Bitcoin-backed credit facility that provides flexible, on-demand liquidity secured by its existing BTC reserves ^[2]. This structure allows Metaplanet to expand its Bitcoin holdings and support share buybacks without diluting existing shareholders through new stock issuance ^[2].

Complementing the credit facility, Metaplanet plans to raise $135 million through the issuance of new Class B perpetual preferred shares ^[2]. Unlike the short-term credit facility, these preferred shares represent long-term funding capital. Investors receive fixed yearly payouts and can convert their shares into regular stock, while the company retains the option to buy them back under certain conditions ^[2].

Holding Through Market Volatility

Metaplanet's aggressive accumulation strategy continues despite significant unrealized losses on its Bitcoin holdings. According to BitcoinTreasuries.NET data, the company is currently sitting on nearly 20% unrealized losses, having purchased its Bitcoin at an average cost of $108,036 while the current BTC price hovers around $87,000 ^[2].

Despite the paper losses, the company remains committed to its long-term Bitcoin strategy. Bitcoin strategy director Dylan LeClair confirmed on X that the company is "HODLing" ^[2].

The contrasting approaches of Texas and Metaplanet illustrate the diverse strategies institutional investors are employing to gain Bitcoin exposure. While Texas opts for a cautious entry through regulated ETF products before moving to self-custody, Metaplanet demonstrates how corporations can leverage sophisticated financial instruments to scale Bitcoin treasury operations even during market downturns.

These developments signal growing institutional confidence in Bitcoin as a strategic asset, with public entities and corporations increasingly willing to navigate short-term volatility for potential long-term benefits.