A growing number of public pension and treasury funds in the U.S. are turning to Strategy (formerly MicroStrategy) as a vehicle for gaining Bitcoin exposure, and their bet appears to be growing after increasing their holdings by $302 million in the first quarter of 2025.
The investment surge has pushed the collective stake held by 14 U.S. states’ public pension and treasury funds in the company to an estimated $632 million.
Strategy ($MSTR), which holds the world’s largest corporate stash of Bitcoin, is increasing its reputation as the go-to equity proxy for institutional investors looking for exposure to crypto without directly holding the asset.
More states are increasing their bets on Bitcoin through $MSTR
In a post on X, Julian Fahrer, founder of Bitcoin Laws, revealed that at least 14 U.S. states hold Strategy shares through their public pension and treasury funds. These include some of the largest state funds in the U.S.
California leads the charge among the states with two major pension funds, the California State Teachers’ Retirement System (CalSTRS) and the California Public Employees’ Retirement System (CalPERS), holding over 690,000 Strategy shares, valued at approximately $276 million.
Florida is a distant second, with the State Board of Administration Retirement System investing in 221,860 shares, worth around $88 million. Meanwhile, the State of Wisconsin Investment Board owns nearly 127,528 shares, valued at $51 million.
Other states that have shares in Strategy include North Carolina, New Jersey, Maryland, Ohio, Texas, Kentucky, Arizona, Utah, Colorado, Louisiana, and Illinois.
Strategy’s appeal stems largely from its aggressive accumulation of Bitcoins. Its stock has responded in kind. Strategy has seen its shares go up by over 220% over the past year, with Bitcoin itself gaining over 70%.
This performance differential has made Strategy an attractive vehicle for institutions seeking growth and crypto exposure, without navigating the operational challenges of direct custody.
Policy implications and what comes next
The growing interest in Bitcoin exposure may not stop at equities. There’s also growing interest in some states considering bills that would allow them to hold Bitcoin directly in treasury reserves.
While some officials see this as a forward-looking hedge against inflation and fiscal instability, others have expressed concern about risk exposure and fiduciary responsibility. Still, the move into Strategy stock offers a politically safer middle ground.
Critics argue that Bitcoin’s volatility makes it unsuitable for retirement accounts or taxpayer-backed funds, while proponents believe that strategic exposure to crypto represents smart long-term diversification.
Analysts say this investment strategy, if sustained, could also add legitimacy to the crypto space and accelerate institutional adoption, especially if these public entities continue to see strong returns.
For now, Strategy and by extension, Bitcoin, is becoming a quiet but powerful feature of the American public finance landscape. This first quarter’s $302 million increase is unlikely to be a one-off event.
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