Florida Retirement System Increases Strategy Holdings to $80M, Supporting Growing Interest in Bitcoin Exposure Through Equities.

The Florida Retirement System has raised its holdings in Bitcoin-focused Strategy to $80M, a 38% increase. Strategy holds over 629,000 BTC, the largest corporate holder. Fourteen state pension funds now control over $632M in Strategy stock exposure, with California and Wisconsin holding the largest portions. This indirect exposure allows pension funds to diversify portfolios while staying within regulated investment frameworks.

The Florida Retirement System (FRS) has significantly increased its holdings in MicroStrategy (MSTR) by 38%, adding $88 million to its indirect Bitcoin exposure. This move follows a broader trend among state pension funds to leverage corporate equity vehicles like MSTR to gain access to cryptocurrencies while adhering to regulatory constraints.

MicroStrategy, now the world's largest corporate holder of Bitcoin with over 629,000 BTC, has become a de facto bridge for institutional investors seeking crypto exposure. Florida's investment mirrors similar strategies by California and Wisconsin, with the latter two collectively holding $276 million in MSTR stock. These actions reflect a growing consensus among institutional managers that Bitcoin's long-term value proposition justifies indirect exposure through equities with clear governance frameworks.

Despite transparency gaps in proxy-based tracking, institutional adoption signals maturing Bitcoin markets. The sheer scale of state pension investments in MSTR—$632 million across 14 U.S. states in Q1 2025—indicates accelerating institutional adoption. Florida's $88 million allocation could translate to indirect exposure to approximately 1,200 BTC, assuming MSTR's current average cost basis.

Critics argue that this approach introduces counterparty risk, as MSTR's Bitcoin holdings are subject to market volatility and corporate governance decisions. However, for institutions bound by regulatory constraints, the trade-off between risk and reward appears favorable. As one Florida pension official noted, "MSTR offers a politically palatable way to hedge against inflation while complying with fiduciary standards" [5].

The trend also raises questions about the future of Bitcoin ETFs and direct institutional custody. While MSTR remains a popular proxy, the $88 million threshold for Florida's investment suggests that state funds may soon seek more direct exposure as regulatory clarity improves [6].

References:
[1] Florida Pension Fund Increases Holdings in MicroStrategy, Boosting Indirect Exposure to Bitcoin [https://www.ainvest.com/news/florida-pension-fund-increases-holdings-microstrategy-boosting-indirect-exposure-bitcoin-2508/]
[2] California quietly became the biggest holder of MicroStrategy [https://finance.yahoo.com/news/california-quietly-became-biggest-holder-203612913.html]
[3] Fund Update: STATE BOARD OF ADMINISTRATION OF FLORIDA RETIREMENT SYSTEM added 61,390 shares of MICROSTRATEGY ($MSTR) to their portfolio [https://www.nasdaq.com/articles/fund-update-state-board-administration-florida-retirement-system-added-61390-shares]
[4] 14 US States Boost MSTR Holdings by $302 Million in Q1 2025 [https://beincrypto.com/us-states-increase-mstr-stock-holdings/]
[5] Public retirement and treasury funds boosted Strategy's $ [https://www.mitrade.com/insights/news/live-news/article-3-826772-20250517]
[6] Florida Retirement Fund's Alleged $80M Stake in MicroStrategy [https://coincu.com/news/florida-fund-microstrategy-rumors/]