Having trouble with graphics.drawtexture to rendertexture

When I use graphics.drawtexture I seem to be having problems where the alpha is being applied to the texture. So for example if the alpha is .5 the pixels in the rgb channels of the outputted material are all darkened as if the black background is coming through. I can't for the life of me figure out how to get the render texture to output the original colors of the meterial along with it's alpha into the outputted material.

All I want to do is use graphics.drawtexture to re-scale a texture on the GPU while keeping it's alpha channel, is this not possible?