States Bet Big on Bitcoin via MicroStrategy

U.S. states are increasingly investing in MicroStrategy, a business intelligence company that has become the world's largest corporate holder of Bitcoin. According to Bitcoin analyst Julian Fahrer, by the end of 2024, 12 states had reported owning a total of $330 million in MicroStrategy stock. This includes major pension funds in California, Florida, Wisconsin, and North Carolina, which are indirectly gaining exposure to Bitcoin through these investments.

California is the largest state investor in MicroStrategy, with its State Teachers Retirement System (CalSTRS) holding 285,785 shares worth around $83 million. Other California state funds, such as the California Public Employees’ Retirement System (CalPERS), also have significant investments in MicroStrategy, with 264,713 shares valued at $76 million. International public funds, including the Healthcare of Ontario Pension Plan in Canada and South Korea's National Pension Service, are also holding significant amounts of MicroStrategy's stock.

MicroStrategy is not just an ordinary tech company—it has a massive Bitcoin treasury. As of February 2025, it holds 478,740 Bitcoins, worth an estimated $46 billion. Recently, the company acquired 7,633 additional Bitcoins, which cost around $742 million. This strategy of accumulating Bitcoin has proven profitable for the company, with its stock gaining 16.5% in early 2025 and a massive 383% over the past year, far outperforming the broader crypto market.

Despite its success, MicroStrategy has also faced challenges. In its Q4 2024 earnings report, the company revealed a $670.8 million loss due to a $1 billion impairment charge on its Bitcoin holdings. These losses highlight the risks associated with such a large investment in a volatile asset like Bitcoin. However, MicroStrategy remains confident in its long-term Bitcoin strategy, which is central to its corporate vision. The company is also pushing forward with its “21/21 plan,” aiming to raise $42 billion over the next three years to further expand its Bitcoin investments.

For many states, investing in MicroStrategy allows them to gain Bitcoin exposure indirectly, offering a potential way to benefit from Bitcoin's rise without directly buying the cryptocurrency. This trend is gaining traction