U.S. States Strategic Move Increase Bitcoin Exposure

In the first quarter of 2025, U.S. state public retirement and pension funds boosted their exposure to $632 million in Strategy’s (formerly MicroStrategy) MSTR stock holdings, a company best known for its large Bitcoin treasury.  This is according to Julian Fahrer, founder of Bitcoin Laws.

The increase is a staggering 91% increase compared to their holdings  which was  $330 million just a quarter earlier. The increase demonstrates how state-managed funds are becoming more interested in using Strategy's enormous Bitcoin reserves without actually holding the currency.

The primary rationale for selecting Strategy, which is led by Michael Saylor, is that it has implemented a business plan focused on Bitcoin accumulation. Since the business has a sizable quantity of Bitcoin on its balance sheet as of early 2025, its stock, MSTR, is essentially a stand-in for changes in the price of the cryptocurrency.

California leads as the largest investor with $276 million in MSTR shares. Florida's state retirement fund accumulated $88 million in shares. Other holdings with sizable holding include: North Carolina with 107,925 shares, Ohio 80,381 and Texas 2,595.

US State MSTR Stock Holdings. Source: BeInCrypto

It's interesting to note that different states have different strategies. For instance, the Wisconsin Investment Board chose to sell off its $300 million investment in BlackRock's spot Bitcoin ETF after growing its position by 26% during the quarter. This action emphasizes how different governmental investment plans are when it comes to digital assets.

All things taken into account, the most recent data indicates a larger trend states in the US are adopting Bitcoin. But doing so through stocks linked to the cryptocurrency rather than direct holdings, indicating both interest in and apprehension about its volatility.