Editor’s note: This story has been corrected to clarify the amount Texas is investing in Bitcoin.

(NewsNation) — Texas has placed taxpayer dollars into a high-risk — but potentially high-reward — cryptocurrency reserve by betting big on Bitcoin.

The Lone Star State launched the nation’s first strategic Bitcoin reserve with a $5 million purchase of the cryptocurrency in November, the state’s Comptroller’s Office confirmed to multiple outlets Monday.

In a statement, acting comptroller Kelly Hancock called the move a major first step: “Our goal for implementation is simple: build a secure reserve that strengthens the state’s balance sheet. Texas is leading the way once again, and we’re proud to do it.”

Critics — and some economists — have shared concern about Bitcoin’s market volatility, high energy use and limited transparency.

University of Houston economist Ed Hirs told NewsNation this investment is likely to increase taxes for the “everyday Joe and Jane.”

Lee Bratcher, CEO of the Texas Blockchain Council, said in a statement that the $5 million purchase is “fundamentally about positioning Texas for the future.”

“We’re not just watching the future of finance unfold — we’re actively participating in it, and we are the first to do so,” Bratcher said.

Texas lawmakers have approved $10 million for a state-run crypto reserve, meaning this initial purchase represents only half its appropriations.

Other states like Arizona and New Hampshire have also approved similar strategic funds, but they have not yet purchased cryptocurrency.

Texas’ first-in-the-nation move is fitting, as the state is home to at least 27 bitcoin mining facilities, more than anywhere else in the world, the Texas Blockchain Council said.

That boom started back in 2021 when China banned crypto mining, and Texas opened the door instead.