U.S. state funds increase holdings in strategy shares for Bitcoin exposure

Several U.S. public state funds have significantly increased their holdings in Strategy, which was previously named MicroStrategy, indicating an augmented demand for exposure to Bitcoin. According to data by Bitcoin-focused builder Julian Fahrer from Q4 2024, SEC reports reveal that at least 12 states buy Strategy shares.

Some of these include Arizona, California, Colorado, Florida, Illinois, Louisiana State, Maryland State, North Carolina State, New Jersey, Texas, Utah State, and Wisconsin State. Collectively, these entities own $330.5 million of the company’s shares, the enterprise that claims to be a Bitcoin treasury since it bought this asset as an enterprise.

🇺🇸 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

Leading state holders

California’s State Teacher’s Retirement System and the Public Employees Retirement Association are the most valuable Strategies, worth $82.8 million and $76.7 million, respectively. Florida’s State Board of Administration Retirement System follows with $46.4 million shares.

The state fund investments increase, which correlates with Strategy’s more aggressive buying plan for Bitcoin. The firm continued to increase its BTC holdings every quarter through Q4 2024, and the balance reached 478,952 BTC, which is worth over $46 billion.

The data shows that an increasing amount of attention is being paid to Bitcoin in the US states. Around 18 states, including Florida, Maryland, Texas, and Utah, have legislatures that are trying to pass direct Bitcoin legislation through strategic reserve bills.

VanEck investment management firm established that if 150 state-level initiatives are carried out, total possible purchases of around 247,000 BTC, corresponding to roughly $23.7bn at current prices, could be made. This reveals some of the growing consciousness of Bitcoin as a public asset.

There are several reasons why state-managed funds are looking to invest in Bitcoin. Some regard it as anti-inflation; they call it ‘digital gold’ because it has limited circulation, just like gold. The other major consideration is diversification since cryptocurrencies are a standout financial product that does not directly relate to other financial markets.

The trend of Bitcoin’s price appreciation also indicates that Bitcoin has the capacity for future growth. Alex Thorn, the head of research at Galaxy Digital, has forecasted that Bitcoin could be valued as high as $185k by 2025.