Texas Holds 197,844 IBIT Shares as Bitcoin Position Falls to $6.6M
In brief
- Texas held 197,844 IBIT shares unchanged through Q2 despite Bitcoin's 13.25% quarterly decline.
- Position market value fell to $6.62 million by June 30, down $3.38 million from original allocation.
- TTSTC filings overstated position worth by roughly $980,000 due to outdated valuations.
- Texas using BlackRock's ETF as interim vehicle before direct Bitcoin custody transition.
Position Unchanged Despite Market Decline
Texas kept its 197,844-share position in BlackRock's iShares Bitcoin Trust (IBIT) unchanged during the second quarter even as Bitcoin declined sharply. BlackRock reported IBIT's net asset value at $33.48 per share on June 30, down from $38.62 at the end of March. The ETF's decline tracked Bitcoin's performance closely—IBIT's NAV fell 13.31% during the quarter as Bitcoin declined 13.25% to $59,101.49 from $68,129.64.
The state's refusal to sell reflects a longer-term conviction in Bitcoin. Texas used BlackRock's ETF as an interim vehicle while preparing to move toward direct Bitcoin custody. That strategic patience means riding out volatility rather than locking in losses.
Regulatory Filings Lag Market Reality
A transparency gap emerged in TTSTC's disclosures. TTSTC's two regulatory filings reported both the share count and the stated value of the IBIT position as unchanged between March and June. The amended March filing listed 197,844 shares with a value of $7,602,000, and the June filing repeated exactly the same figures.
The static valuation masks a material loss. By June 30, the same number of IBIT shares was worth roughly $980,000 less based on BlackRock's reported NAV. Investors and watchdogs reviewing the state's filings would see no indication the position had depreciated.
The Broader Bet
At the June 30 valuation, the 197,844 shares were worth about $3.38 million less than that original appropriation. The state is now underwater on its Bitcoin reserve by roughly one-third.
Whether this represents conviction or inertia remains unclear. Texas's move toward direct custody suggests a long-term thesis rather than a quick trade. But the gap between filed valuations and market reality raises questions about how closely state treasurers are monitoring their crypto holdings.
