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US States Boost MSTR Holdings by 91.5% in Q1 2025

Coin WorldFriday, May 16, 2025 7:26 am ET

1min read

In the first quarter of 2025, fourteen US states reported a significant increase in their holdings of MicroStrategy Incorporated (MSTR) stock, reaching a collective value of $632 million. This marks a 91.5% rise from the $330 million reported in the fourth quarter of 2024, highlighting a strategic shift in public retirement funds towards Bitcoin investments through MSTR’s extensive reserves.

California is at the forefront of this trend, with investments totaling $276 million across the California State Teachers’ Retirement System (CalSTRS) and the Public Employees Retirement System. CalSTRS, for example, increased its holdings by 18%, bringing its total to 336,936 shares. The Public Employees’ Retirement System also saw a substantial increase, adding 92,470 shares, marking a 35% growth in the first quarter of 2025. Florida has also increased its holdings to $88 million, demonstrating the state’s commitment to embracing cryptocurrency via MSTR.

Other states are following suit, with Arizona increasing its MSTR holdings to $26 million, despite political headwinds regarding Bitcoin regulations. Wisconsin’s approach is more cautious, with the Investment Board growing its MSTR stake to $51 million while simultaneously divesting its $300 million investment in the BlackRock iShares Bitcoin Trust (IBIT). This move indicates a calculated stance toward traditional crypto ETFs. Utah, on the other hand, emerged as a standout performer with an 184% quarterly growth rate, albeit with a smaller $10 million investment, suggesting an accelerating move towards crypto assets among traditionally conservative funds.

Julian Fahrer, a noted crypto advocate, commented on the trend, stating, “A collective increase of $302 million in one quarter shows a remarkable shift in state-level investment principles.” He also noted that the level of engagement from state funds in cryptocurrency is unprecedented, reflecting a growing institutional confidence in Bitcoin-related assets.

The growing investment in MSTR coincides with an overall resurgence in the cryptocurrency market. MSTR shares have gained 37% year-to-date, showcasing the stock’s resilience and the bullish sentiment surrounding Bitcoin. As of May 9, MSTR stock peaked at $430, the highest point since late 2024. However, a recent spike was tempered by a swift drop, illustrating the volatility within the market. These fluctuations underscore the complexities of investing in cryptocurrency-based securities.

The $632 million collective investment in MSTR by US states illustrates a pivotal moment for institutional adoption of cryptocurrency. This trend reflects both excitement and caution, as funds navigate the evolving landscape of digital assets. Investors are advised to follow developments closely, as shifts in state investment strategies could signal broader acceptance of Bitcoin markets. The story of MSTR is one of cautious optimism as public funds seek to balance traditional investment principles with the potential of cryptocurrency assets.

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