U.S. Pension Funds Indirectly Buying Bitcoin: What We Know

Twelve North American states have collectively invested $330 million in Strategy (formerly MicroStrategy) stock through their pension funds and treasuries, according to recent regulatory filings. 

Analyst Julian Fahrer highlighted that California, Florida, Wisconsin, and North Carolina have the highest exposure to Strategy stock.

California Leads with the Largest Stake in Strategy

California’s pension funds hold the most significant share of Strategy stock, reflecting the state’s willingness to gain indirect exposure to Bitcoin.

• California State Teachers Retirement System (CalSTRS): Owns 285,785 shares worth approximately $83 million as of the latest SEC Form 13F filing on February 14, 2025. The fund, which manages $69 billion in stock investments, has also doubled the value of its MSTR holdings in just one quarter.

• California Public Employees’ Retirement System (CalPERS): Holds 264,713 shares, valued at around $76 million. This fund, managing over $149 billion, also has significant exposure to Coinbase (COIN), with $79 million in holdings.

Other States Increasing Their Holdings

• Florida: The State Board of Administration of Florida Retirement System holds 160,470 shares of Strategy stock, worth $46 million.

• Wisconsin: The State of Wisconsin Investment Board owns 100,957 shares, valued at $29 million.

• North Carolina: The State Treasurer has invested $22 million in Strategy stock.

• New Jersey: The state’s Police and Firemen’s Retirement System and Common Pension Fund collectively hold $26 million in shares.

• Additional states with Strategy stock holdings include Arizona, Colorado, Illinois, Louisiana, Maryland, Texas, and Utah.

Why Are Public Funds Investing in Strategy?

Bitcoin Exposure Without Direct Crypto Investment

By investing in Strategy, public pension funds are gaining indirect exposure to Bitcoin without directly holding the cryptocurrency. Since rebranding from MicroStrategy, Strategy has positioned itself as a Bitcoin-focused company, making it an attractive investment for institutions looking to benefit from BTC’s growth.

As of early 2025, Strategy holds 478,740 BTC, worth over $46 billion, reinforcing its reputation as the largest corporate holder of Bitcoin.

Strategy’s stock price surged by 70% in the last quarter of 2024, reflecting increasing investor confidence.

• October 1, 2024: Strategy shares opened at $168.5.

• December 31, 2024: The stock closed at $289.6, marking a significant year-end rally.

• February 2025: Strategy stock further climbed to $337.73, maintaining its upward momentum.

BlackRock, the world’s largest asset manager, has also increased its stake in Strategy to 5%, according to a recent filing.

With over $11.6 trillion in assets under management, BlackRock’s increased exposure to Strategy suggests a broader shift among traditional financial institutions toward Bitcoin.

Bitcoin ETFs are now approved, and with institutional demand on the rise, public pension funds may continue allocating more capital to Bitcoin-related stocks like Strategy and Coinbase.