In an unexpected financial shift, retirement managers across 14 states in the US have infused a remarkable $632 million into Strategy stock, aiming to harness Bitcoin’s impressive growth without directly purchasing the cryptocurrency itself. This trend has quickly gained momentum over a single quarter.
Pension Funds Embrace New Opportunities
Data suggests that public pension funds significantly increased their holdings by a total of $302 million during the first quarter of 2025, marking an average growth of 44% in their stock positions. With Strategy’s entry into the Bitcoin market, their stock is beginning to behave similarly to the cryptocurrency, allowing trustees apprehensive about storage or regulatory issues to trade MSTR shares just like conventional stocks.
State-Wise Surge in Stock Acquisitions
Leading the way, California has amassed 694,119 shares worth approximately $276 million. Florida’s public funds hold 221,860 shares, totaling around $88 million, while Wisconsin possesses 127,528 shares valued at about $51 million.
BREAKING: In Q1, 14 states reported $632 million in $MSTR holdings. An impressive increase of $302 million in just one quarter, averaging 44% in growth. pic.twitter.com/0PKm1avcPR
— Julian Fahrer (@Julian__Fahrer) May 15, 2025
In addition to California and Florida, North Carolina’s reports indicate 107,925 shares valued at $43 million, while Ohio has accumulated 80,381 shares ($32 million) and Texas owns 72,595 shares ($29 million). States like Arizona and New Jersey are also gradually increasing their crypto-related stock holdings, illustrating this trend from the West to the East Coast.
Remarkable Increases Observed
Among the states, Utah stands out with an astounding 184% growth, now holding 25,287 shares. Colorado recorded a 67% rise, while Florida’s stake ascended by 38%. Texas, Louisiana, Maryland, and New Jersey have also shown notable increases this quarter, indicating a growing interest in tapping into the potential of cryptocurrencies.
Legislative Developments Indicate Shifting Attitudes
Reports reveal that legislators in 26 states have introduced 47 crypto-related bills this session, with 37 currently in play. Recently, New Hampshire enacted a law permitting up to 5% of its treasury to be invested in Bitcoin.
Arizona voters supported the use of cryptocurrency for unclaimed assets but rejected direct treasury investments in Bitcoin. Likewise, Florida faced similar hurdles in committee. This dichotomy showcases a split agenda among politicians regarding the governance of public funds related to Bitcoin.
Evaluating Risks and Rewards
Pension funds aim for consistent returns to cover future liabilities, and Bitcoin’s sharp gains are certainly appealing. However, the asset is notorious for its volatility. Strategy shares tend to amplify these fluctuations, raising concerns that sudden declines could substantially affect state funds.
Conversely, continued bullish trends would validate this strategic move. Currently, public fund managers are cautiously exploring crypto investments, benefiting from potential gains while adhering to traditional stock regulations.
Featured image from Unsplash, chart from TradingView
