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- 12 U.S. states invest $330M in Strategy stock, gaining indirect Bitcoin exposure through pension funds like CalSTRS & CalPERS.
- Strategy holds 478,740 BTC worth $46B, with its stock surging 383% YoY despite a $670.8M Q4 loss from Bitcoin impairment.
A growing number of U.S. states are investing in Strategy, the business intelligence firm formerly known as MicroStrategy, to gain indirect exposure to Bitcoin. According to Bitcoin analyst Julian Fahrer, 12 states now hold a combined $330 million in Strategy stock, making it a key investment for major pension funds.
🇺🇸 Big Strategy update:
12 US states reported public $MSTR holdings in Q1 (pension funds or Treasury) totaling $330m. pic.twitter.com/QYXGMktNTZ
— Julian Fahrer (@Julian__Fahrer) February 16, 2025
States, including California, Florida, Wisconsin, and North Carolina, have allocated significant funds to the company, which holds the largest corporate Bitcoin treasury. This move reflects increasing institutional interest in Bitcoin-backed assets as states seek to capitalize on the cryptocurrency’s long-term growth potential.
California Leads with Largest Bitcoin-Backed Holdings
California has emerged as the largest state investor in Strategy, with its State Teachers Retirement System (CalSTRS) holding 285,785 shares worth approximately $83 million. Another major fund, the California Public Employees’ Retirement System (CalPERS), owns 264,713 shares, valued at $76 million.
Other states have also made notable investments. Florida, Wisconsin, and North Carolina have allocated pension funds to Strategy, recognizing the stock’s close correlation with Bitcoin’s performance. International investors are also involved, with Canada’s Healthcare of Ontario Pension Plan holding $15 million in shares and South Korea’s National Pension Service investing $63 million in the company.
As of February 2025, Strategy holds 478,740 Bitcoins, valued at approximately $46 billion. The company recently purchased 7,633 additional Bitcoins for $742 million, reinforcing its strategy of accumulating digital assets.
Despite Bitcoin’s volatility, Strategy’s stock has delivered strong returns. In early 2025, the stock gained 16.5%, while its year-over-year increase reached 383%, far outperforming the broader crypto market. However, the company also reported a $670.8 million loss in Q4 2024, largely due to a $1 billion impairment charge on its Bitcoin holdings. Even with these setbacks, Strategy remains committed to its Bitcoin investment plan, known as the “21/21 plan,” which aims to raise $42 billion over three years to expand its Bitcoin reserves.
States Move Toward Bitcoin Adoption
States investing in Strategy stock see it as an alternative to direct Bitcoin ownership, allowing them to benefit from cryptocurrency’s growth while avoiding direct exposure to its regulatory complexities.
In line with this trend, West Virginia Senator Chris Rose recently introduced the Inflation Protection Act of 2025, which would allow the state treasury to invest in digital assets like cryptocurrencies and precious metals. Other states, including Utah and Kentucky, are also considering similar measures.
On the global front, World Liberty Financial (WLFI) recently announced the launch of a macro strategic reserve aimed at strengthening its position in the crypto market. According to an official statement, this reserve will support Bitcoin, Ethereum, and other digital assets, providing a stable financial foundation.
As institutions continue exploring Bitcoin-backed investments, the trend of state-backed crypto exposure is gaining momentum, signaling broader adoption of digital assets in mainstream finance.
