Several U.S. states, such as California, Florida, Wisconsin, and North Carolina, are investing in Strategy stock, previously known as MicroStrategy. This investment allows them to gain indirect exposure to Bitcoin.
Strategy’s aggressive approach to acquiring Bitcoin has boosted its stock performance. State pension funds view this as a way to benefit from Bitcoin’s long-term potential without directly buying the cryptocurrency.
California is leading these investments. The State Teachers Retirement System holds 285,785 shares valued at about $83 million. CalPERS owns 264,713 shares worth around $76 million. By the end of 2024, twelve U.S. states had invested over $330 million in Strategy’s stock.
This trend is not just in the U.S. International investors, like Canada’s Healthcare of Ontario Pension Plan and South Korea’s National Pension Service, have also made significant investments.
Strategy’s appeal comes from its large Bitcoin holdings, which total 478,740 BTC, valued at approximately $46 billion. This has led to a 383% increase in its stock price over the past year, outperforming the broader crypto market.
Legislative efforts, such as West Virginia’s Inflation Protection Act, show a growing interest in digital assets in public portfolios. These initiatives may lead to more adoption of investment strategies that provide indirect exposure to Bitcoin through Strategy.
Despite facing challenges, including a $670.8 million loss in Q4 2024 due to a Bitcoin impairment charge, Strategy remains focused on its long-term “21/21 Plan.”
