Texas Holds 197k IBIT Shares, Plans Shift to Direct Bitcoin Custody

Woofun AI reports that the Texas Treasury Safekeeping Trust Company's Q2 Form 13F information table lists 197,844 shares of BlackRock's iShares Bitcoin Trust ETF, or IBIT, signaling a transitional phase before the state shifts its Strategic Bitcoin Reserve to direct Bitcoin holdings.

The matching share counts in the amended Q1 filing confirm an unchanged position on the two reporting dates, though this static figure does not reflect a complete trading history. Form 13F captures quarter-end holdings exclusively, meaning it cannot rule out sales and repurchases that may have occurred between the reporting periods. Consequently, the lack of a quarter-end change represents a snapshot of final positions rather than a record of continuous activity.

This holding stability persisted during a significant 13.25% Bitcoin decline, with the asset price dropping from $68,129.64 on March 31 to $59,101.49 on June 30. The market downturn created a challenging backdrop for the state's initial accumulation strategy, testing the resilience of its early investment thesis.

BlackRock reported a June 30 net asset value of $33.48 per IBIT share, which valued Texas's 197,844 shares at $6,623,817. In contrast, using the March 31 NAV of $38.62 places the same shares at $7,640,735. The quarterly decline was therefore approximately $1.02 million, or 13.31%, aligning closely with the drop in IBIT's NAV.

Notably, Texas's Q2 information table repeats the $7.602 million value shown in its amended Q1 filing, creating a discrepancy with current market metrics. That number was close to the position's first-quarter value but sat almost $1 million above the result produced by BlackRock's June 30 NAV. The filing does not explain the discrepancy, so the share count and the fund's published NAV provide the more reliable quarter-end estimate for external analysts.

Woofun AI data shows that the state's procurement record indicates that $10 million was used to acquire IBIT, implying an acquisition cost of about $50.54 per share if that entire amount corresponds to the 197,844 reported shares. At the June 30 value, the position would be approximately $3.38 million lower than the initial outlay, representing a 33.8% paper decline. This substantial unrealized loss highlights the volatility inherent in the state's entry timing.

Texas's official request for custody and liquidity services clarifies that the $10 million allocated to the Strategic Bitcoin Reserve was used to acquire IBIT as an interim measure. The stated objective is to move the reserve from ETF shares to direct Bitcoin holdings once the custody system is ready. That planned conversion changes how the next filing should be read, as a smaller IBIT position could mean Texas reduced its exposure or simply sold ETF shares to buy Bitcoin directly.

The procurement timetable anticipates contract execution on August 28 and commencement of work on August 31, with the selected provider expected to implement the reserve within 60 days of contract execution. These dates are targets rather than guarantees, introducing potential delays into the transition timeline. The structured approach aims to ensure robust infrastructure before assuming direct ownership risks.

The procurement document requires controls covering private-key generation, cold storage, access permissions, security testing, and transaction approval. Moving out of the ETF would remove IBIT's 0.25% annual sponsor fee but would also give Texas responsibility for custody oversight, cybersecurity, and transaction controls. Direct ownership may not be cheaper once provider fees and operating costs are included, as the final contract terms have not been disclosed.

At June 30 prices, the IBIT position represented approximately 112.1 BTC of economic exposure, though Texas did not own that amount in a state-controlled wallet. Two Abu Dhabi investment entities reported a combined 22,940,629 IBIT shares at June 30, with a combined reported value of approximately $763.7 million. That share count was nearly 116 times larger than Texas's, making the Texas position about 0.86% of the combined Abu Dhabi stake. This comparison puts Texas's market impact in perspective; while its stake is small, its mandate is different as it builds a public reserve beyond the ETF wrapper.

Texas law requires the comptroller to publish and submit a biennial report by December 31 of each even-numbered year, disclosing the amount and estimated value of cryptocurrency held. Form 13F reports provide quarter-end snapshots and do not disclose every transaction, cost basis, or offsetting position. Calculations in this article use the reported share counts and BlackRock's published net asset values. This article is for informational purposes only and does not constitute investment advice.