A growing trend in U.S. state investments has seen an increasing number of states, including major pension funds, purchasing shares in Strategy (formerly MicroStrategy), the world’s largest corporate holder of Bitcoin. According to Bitcoin analyst Julian Fahrer, by the end of 2024, 12 states are set to own a total of $330 million in Strategy stock. This move allows these states to gain indirect exposure to Bitcoin, leveraging Strategy’s massive Bitcoin holdings as a proxy investment.
🇺🇸 Big Strategy update:
— Julian Fahrer (@Julian__Fahrer) February 16, 2025
12 US states reported public $MSTR holdings in Q1 (pension funds or Treasury) totaling $330m. pic.twitter.com/QYXGMktNTZ
California Leads the Charge
California is leading the way, with the State Teachers Retirement System (CalSTRS) holding 285,785 shares of Strategy, valued at approximately $83 million. Another prominent investor, the California Public Employees’ Retirement System (CalPERS), holds 264,713 shares, worth $76 million. As Strategy’s business model revolves around Bitcoin acquisition, these state funds see an opportunity to capitalize on Bitcoin’s long-term growth potential without directly buying the cryptocurrency.
International Funds Join the Movement
International public funds are also following suit. The Healthcare of Ontario Pension Plan in Canada holds $15 million in Strategy stock, while South Korea’s National Pension Service owns $63 million. These investments reflect a broader trend of institutional players leveraging Bitcoin exposure through Strategy, seeing it as a safe and profitable bet.
Strategy’s Bitcoin Playbook
Strategy is no ordinary tech company. As of February 2025, it holds 478,740 Bitcoins, worth an estimated $46 billion. The company has continued to add to its Bitcoin stash, with its recent acquisition of 7,633 Bitcoins for $742 million. This strategy has paid off, with Strategy’s stock rising 16.5% in early 2025 and gaining 383% over the past year, outpacing the broader crypto market.
Despite the rewards, Strategy’s Bitcoin-heavy strategy has its risks. In Q4 2024, the company revealed a $670.8 million loss, stemming from a $1 billion impairment charge on its Bitcoin holdings. However, Strategy remains optimistic, with a long-term vision centered around Bitcoin and a goal to raise $42 billion over the next three years.
States’ Strategic Moves on Bitcoin Exposure
For states, investing in Strategy offers a way to gain exposure to Bitcoin without directly purchasing the cryptocurrency. This growing trend is even prompting legislative changes, like West Virginia’s Inflation Protection Act of 2025, which would allow the state treasury to invest in digital assets. As Bitcoin’s potential continues to rise, more states may follow California’s lead in securing a stake in the cryptocurrency through companies like Strategy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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