Florida Pension Fund Increases Holdings in MicroStrategy, Boosting Indirect Exposure to Bitcoin

California is the largest holder of MicroStrategy, with the Public Employees Retirement System (CalPERS) owning 357,183 shares and the State Teachers' Retirement System (CalSTRS) owning 336,936 shares. Other states, such as Florida, Wisconsin, and North Carolina, have also increased their holdings in MicroStrategy, representing a growing trend of state pensions investing in digital assets, including Bitcoin.

California is emerging as the leading state in holding MicroStrategy (MSTR) shares, with the Public Employees Retirement System (CalPERS) and the State Teachers' Retirement System (CalSTRS) owning a significant portion of the company's stock. As of May 16, CalPERS held 357,183 shares, while CalSTRS owned 336,936 shares [2]. This trend is part of a broader shift among state pensions towards investing in digital assets, including Bitcoin, despite legal and regulatory constraints.

Florida has also increased its holdings in MicroStrategy, with the State Board of Administration of the Florida Retirement System adding 61,390 shares, representing a 38% increase from the previous quarter [2]. The move allows Florida's pension managers to gain exposure to Bitcoin through regulated equity without directly purchasing the cryptocurrency. Other states, such as Wisconsin and North Carolina, have similarly increased their holdings in MicroStrategy, reflecting a growing trend among state pensions to invest in digital assets.

The decision to invest in MicroStrategy shares is driven by several factors. Firstly, the company remains the world's largest corporate holder of Bitcoin, with over 629,000 BTC worth tens of billions of dollars [2]. Secondly, the company's stock provides a way for state pension funds to gain exposure to Bitcoin while avoiding the direct custody risks associated with holding the cryptocurrency. Lastly, the increasing acceptance of Bitcoin as a hedge against inflation and geopolitical risks has made it an attractive investment for institutional investors [3].

The latest developments come amid a broader trend of institutional investors, including sovereign wealth funds and pension boards, allocating capital to Bitcoin as a hedge against inflation, currency devaluation, and geopolitical instability [3]. Norway's Norges Bank Investment Management (NBIM), the world's largest sovereign wealth fund, has amplified its indirect Bitcoin exposure by 83% in Q2 2025, primarily through equity stakes in Bitcoin-holding companies like MicroStrategy and Metaplanet [3]. This move reflects a broader trend: SWFs are leveraging corporate proxies to gain exposure to Bitcoin's deflationary properties while avoiding direct custody risks.

The rise of Bitcoin Treasuries is challenging the dominance of traditional Treasury markets and reshaping global macro strategies. Bitcoin's low correlation with equities and negative correlation with gold position it as an attractive diversifier, prompting 20–25% crypto allocations in institutional portfolios [3]. The proposed U.S. Strategic Bitcoin Reserve (SBR) could further disrupt Treasury markets, potentially altering liquidity dynamics and pricing mechanisms.

Regulatory clarity from U.S. spot ETF approvals and EU/Japan frameworks has accelerated institutional adoption, with 75% of investors planning higher crypto allocations and 59% targeting over 5% AUM in 2025 [3]. These developments highlight Bitcoin's transition from a niche asset to a core component of diversified portfolios.

References:
[1] https://www.thestreet.com/crypto/markets/massive-relief-for-microstrategy-as-troubling-lawsuit-ends
[2] https://www.thestreet.com/crypto/investing/california-biggest-holder-microstrategy-bitcoin
[3] https://www.ainvest.com/news/btc-treasuries-bitcoin-reshaping-sovereign-wealth-global-macro-strategies-2508-6/