In the first quarter of 2025, public pension and treasury funds from 14 U.S. states reported holding a total of $632 million worth of MicroStrategy (MSTR) shares. According to data shared by Bitcoin Laws founder Julian Fahrer, this figure represents a remarkable 91.5% increase compared to $330 million in the previous quarter. This rise is a concrete indicator of U.S. states' growing indirect interest in crypto assets.
MicroStrategy and Indirect Crypto Investment
As is known, MicroStrategy holds over 214,000 Bitcoin on its balance sheet. Thanks to this feature, investments made by public funds in MSTR shares allow them to implement a strategy of exposure to this asset without directly purchasing Bitcoin. In an environment where market volatility and regulatory uncertainties continue, this method stands out as a cautious alternative.
Notable States and Figures
- California: Leads with an investment of $276 million. The State Teachers Retirement System (CalSTRS) and the Public Employees Retirement System hold the majority of MSTR shares.
- Florida: Ranks second with assets worth $88 million. It holds 221,860 MSTR shares and recorded a 38% increase.
- North Carolina and New Jersey: Each stand out with investments of $43 million. NJ Police and Firefighters Retirement System grew by 40%, while Retirement Fund D grew by 14%.
- Utah: Achieved the highest quarterly growth rate with 184%.
- Colorado: Recorded 67% growth.
- Arizona: Despite the veto of the Bitcoin reserve law, increased its MSTR shares by 25%.
Wisconsin and the Indirect Investment Strategy
At the beginning of the year, the Wisconsin Investment Board liquidated its $300 million position in BlackRock’s iShares Bitcoin Trust fund. However, holding $51 million worth of MSTR shares shows that institutional investors prefer exposure to crypto via indirect company shares rather than direct ETFs.
Public Funds Are Taking Crypto Seriously
These moves reveal that public funds are increasingly interested in cryptocurrencies and are strategically including them in their portfolios. Indirect exposure to Bitcoin through MSTR shares provides a vital interim solution for institutions that cannot make direct purchases due to political and legal uncertainties. The continuation of this trend indicates that crypto assets will become even more integrated into the institutional finance world.
