As Bitcoin continues to capture the world’s attention, an increasing number of U.S. states are quietly making big moves to tap into its potential. The key player in this growing trend? Strategy, a business intelligence company once known as microstrategy
But what makes this story even more fascinating is how states are using Strategy as a gateway to Bitcoin exposure, without actually buying the cryptocurrency.
As revealed by Julian Fahrer, by the end of 2024, 12 states will have invested over $330 million in Strategy’s stock, and the story behind it is one worth diving into.
California is the biggest investor in Strategy, with its State Teachers Retirement System (CalSTRS) owning 285,785 shares worth around $83 million. Other state funds in California, including the California Public Employees’ Retirement System (CalPERS), also hold significant positions in Strategy, with CalPERS owning 264,713 shares valued at $76 million.
These funds are drawn to Strategy because its business model revolves around acquiring Bitcoin, making it a popular choice for states seeking to tap into Bitcoin’s growth.
Strategy’s focus on Bitcoin makes its stock an appealing option for states that want exposure to the cryptocurrency market. With Bitcoin’s long-term potential, investing in Strategy allows these states to indirectly benefit from Bitcoin’s rise.
It’s not just U.S. states investing in Strategy. Julian Fahrer notes that public funds from around the world have also taken significant stakes in the company.
For example, Healthcare of Ontario Pension Plan in Canada holds $15 million in Strategy stock, while South Korea’s National Pension Service has invested $63 million.
What sets Strategy apart from other tech companies is its massive Bitcoin treasure trove. As of February 2025, the company owns 478,740 Bitcoins, worth an estimated $46 billion. Recently, the company added 7,633 more Bitcoins to its portfolio, at a cost of about $742 million.
This strategy of acquiring Bitcoin has been highly profitable, with Strategy’s stock rising 16.5% in early 2025 and a stunning 383% over the past year – significantly outpacing the broader cryptocurrency market.
Despite its success, Strategy has faced challenges. In its Q4 2024 earnings report, the company revealed a $670.8 million loss, mostly due to a $1 billion impairment charge on its Bitcoin holdings. This shows the risks of holding such a large amount of a volatile asset like Bitcoin. However, Strategy remains confident in its long-term Bitcoin strategy, which is central to its future growth.
Looking ahead, Strategy plans to continue growing its Bitcoin holdings with its “21/21 Plan”, which aims to raise $42 billion over the next three years to buy more Bitcoin.
Meanwhile, some states are taking steps to invest in digital assets. West Virginia Senator Chris Rose has introduced the Inflation Protection Act of 2025, which would allow the state treasury to invest in digital assets like cryptocurrencies and precious metals.
This effort is part of a larger trend, with U.S. President Donald Trump
It seems like Strategy’s Bitcoin strategy could become a blueprint for others to follow in the years ahead.
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