CalSTRS, US's third-largest pension fund, invests $133 million in Bitcoin via MicroStrategy stake

CalSTRS, the third-largest public pension fund in the US, has indirectly invested $133 million in Bitcoin through its investment in MicroStrategy. By buying 25,346 shares of MicroStrategy, CalSTRS effectively linked part of educators' retirement assets to the performance of the largest crypto in the world. The investment carries risks due to its correlation with Bitcoin's swings, but it marks a historic moment for the pension fund and may inspire others to take similar leaps.

The California State Teachers' Retirement System (CalSTRS), one of the largest public pension funds in the United States, has made a significant move by indirectly investing $133 million in Bitcoin. This investment, facilitated through a purchase of 25,346 shares of MicroStrategy (MSTR), marks a notable shift in the pension fund's strategy and reflects a growing openness among traditional institutions to crypto assets [2].

MicroStrategy, now known as Strategy Inc., has been a trailblazer in corporate Bitcoin holdings. As of August 19, 2025, the company's Bitcoin holdings stood at over 629,000 BTC, valued at approximately $71 billion [1]. This substantial investment makes owning MicroStrategy stock economically equivalent to being a levered long position in Bitcoin. Consequently, CalSTRS's investment in MSTR effectively links part of educators' retirement assets to the performance of the largest crypto in the world.

The decision to invest in Bitcoin through MicroStrategy carries inherent risks. The stock price of MicroStrategy is highly correlated with Bitcoin's price swings, exposing CalSTRS to the volatility of the crypto market. However, this move can be seen as a historic moment, as one of the largest pension funds in the nation is willing to take on Bitcoin-linked exposure. This may inspire other pension funds and traditional investors to follow suit.

The investment comes at a time when President Donald Trump's executive order on August 7 allows cryptocurrencies and other alternative assets to be incorporated into 401(k) retirement plans. This regulatory shift may further encourage institutional investors to explore crypto assets as part of their investment strategies.

As of the current date, August 19, 2025, MicroStrategy's valuation was about $96 billion, underscoring its status as a Bitcoin proxy. The company's continued accumulation strategy and resilience during market volatility have solidified its position as the largest corporate holder of Bitcoin.

References:
[1] MicroStrategy Snaps Up More Bitcoin - Holdings Now Worth Over $72B. (https://coindoo.com/microstrategy-snaps-up-more-bitcoin-holdings-now-worth-over-72b/)
[2] US's third-largest pension fund makes big investment move. (https://www.thestreet.com/crypto/markets/us-pension-fund-investment-bitcoin)