In a strategic move to gain exposure to Bitcoin, 12 U.S. states have invested a combined $330 million in Strategy, a business intelligence company that has become the world’s largest corporate holder of Bitcoin. This significant investment includes major pension funds from states like California, Florida, Wisconsin, and North Carolina. These investments allow states to indirectly tap into Bitcoin’s potential without directly purchasing the cryptocurrency, with Strategy’s substantial Bitcoin holdings acting as a proxy.
California Leads the Charge in Bitcoin-Backed Investments
California, home to some of the largest public pension funds in the U.S., is leading the charge in this Bitcoin-backed investment trend. The California State Teachers Retirement System (CalSTRS) holds a massive 285,785 shares of Strategy, valued at $83 million. Another major state fund, the California Public Employees’ Retirement System (CalPERS), holds 264,713 shares, worth approximately $76 million.
These investments are part of a broader effort by California’s state pension funds to capitalize on the potential long-term value of Bitcoin. Strategy’s focus on acquiring and holding Bitcoin aligns with the interests of these state funds, which are seeking a way to benefit from the cryptocurrency’s potential appreciation without directly buying Bitcoin themselves.
Global Public Funds Join the Bitcoin Play
The trend of investing in Strategy is not limited to U.S. states. International public funds are also getting involved, including the Healthcare of Ontario Pension Plan in Canada, which holds $15 million in Strategy stock. In addition, South Korea’s National Pension Service holds $63 million in the company, further demonstrating the growing global interest in Bitcoin as an asset class.
Strategy’s Bitcoin Playbook and Recent Gains
Strategy, formerly known as MicroStrategy, has built its business model around the acquisition of Bitcoin. As of February 2025, the company holds an impressive 478,740 Bitcoins, worth around $46 billion. In early 2025, Strategy made a significant acquisition, purchasing an additional 7,633 Bitcoins for approximately $742 million.
This aggressive strategy of accumulating Bitcoin has paid off. Strategy’s stock surged by 16.5% in early 2025 and has gained an astonishing 383% over the past year, far outpacing the broader cryptocurrency market. This remarkable performance has made Strategy’s stock increasingly attractive to investors, including U.S. state pension funds.
A Risky But Rewarding Bet on Bitcoin
While Strategy’s Bitcoin strategy has been profitable, it has not been without risks. In its Q4 2024 earnings report, the company reported a $670.8 million loss, largely due to a $1 billion impairment charge on its Bitcoin holdings. These losses highlight the inherent volatility of investing in Bitcoin, a highly speculative and fluctuating asset.
Despite these challenges, Strategy remains committed to its Bitcoin-focused strategy, which is central to its long-term corporate vision. The company is also pursuing its ambitious 21/21 plan, which aims to raise $42 billion over the next three years to expand its Bitcoin holdings further.
Why States Are Choosing to Invest in Strategy
Investing in Strategy stock offers U.S. states a way to gain exposure to Bitcoin’s potential without directly buying the volatile cryptocurrency. This indirect exposure allows states to participate in the rising value of Bitcoin while mitigating some of the risks associated with holding the digital asset itself.
As more states look to digital assets as part of their investment strategies, West Virginia Senator Chris Rose recently introduced the Inflation Protection Act of 2025. This legislation would allow the state treasury to invest in digital assets like Bitcoin and other cryptocurrencies, following the growing trend among U.S. states to explore blockchain and crypto investments. Other states like Utah and Kentucky are also moving in this direction, seeking ways to incorporate digital assets into their long-term financial strategies.
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