Texas Pension Fund Invests $25M in Bitcoin via MicroStrategy Shares Bitcoin Mining Stocks Surge 73%-124% Despite Industry Challenges Next Technology Plans $500M Stock Sale to Buy More Bitcoin

Bitcoin's latest price was $, in the last 24 hours. The Teacher Retirement System of Texas has disclosed a $25 million investment in Bitcoin through MicroStrategy stock, reflecting a growing institutional interest in cryptocurrency. This cautious approach involves indirect exposure to Bitcoin through equity in MicroStrategy, a company focused on accumulating Bitcoin. The investment, executed through MicroStrategy shares, indicates a trend among institutional investors showing interest in cryptocurrency. MicroStrategy shares have reportedly outperformed major U.S. tech stocks, potentially benefiting from Bitcoin's volatility. Although Texas lawmakers introduced House Bill 4258 to expand crypto investment authority, it did not pass. The fund's decision to invest via equities instead of direct holdings reflects regulatory caution and institutional strategy. This move demonstrates a broader pattern of cautious engagement with cryptocurrencies among public pension systems, suggesting potential shifts in financial strategies as pension funds explore digital asset investments moving forward. Future outcomes depend on regulatory environments and market performance trends.

Bitcoin mining stocks have extended their recovery in September, outpacing Bitcoin despite continued pressure on industry economics and longer hardware payback periods. Shares of Cipher Mining, Terawulf, Iris Energy, Hive Digital Technologies, and Bitfarms surged between 73% and 124% over the past month. The rally in mining stocks comes despite continued pressure on industry fundamentals, with the Bitcoin network's next difficulty adjustment projected to rise another 4.1%. This would mark the first epoch with an average hashrate above the zetahash mark, achieved in September based on Bitcoin's 14-day moving average hashrate. However, profitability strains persist, with hashprice remaining below $55 petahash per second and transaction fees slipping under 0.8% of monthly rewards. Investors are rewarding miners pursuing GPU and AI pivots, with Hive Digital accelerating its transition into AI data center infrastructure, Iris Energy ramping up with Blackwell GPUs, and Terawulf drawing momentum from its high-performance computing partnership with Google. Faced with tighter profit margins, rising costs, and growing competition, Bitcoin miners are increasingly turning to diversification strategies to stay afloat. Beyond pivoting resources toward AI and high-performance computing, many miners have also embraced a treasury strategy, holding onto more mined Bitcoin in anticipation of a future price surge. This trend gained momentum through 2024 as companies retained a larger share of their production, with Glassnode data showing wallet balances rising for three consecutive weeks. On Sept. 9, net inflows peaked at 573 BTC, the largest daily increase since October 2023.

Next Technology Holding, China’s largest corporate holder of Bitcoin, has announced plans to sell up to $500 million of its common stock to acquire additional Bitcoin and for general corporate purposes. This move is an indicator of ongoing investment in digital assets as a strategic investment in the treasury. The software company plans to use the proceeds for general corporate purposes and to buy Bitcoin, reflecting a larger trend among public companies relying on equity issues, convertible notes, and other financial instruments to finance Bitcoin acquisitions. This plan is based on the belief that Bitcoin can store value long-term and protect against inflation. By 2025, there will be approximately twice as many publicly traded Bitcoin companies, with 190 companies currently holding more than 1 million BTC in total, representing over 5 percent of the total supply of Bitcoin. This indicates greater institutional interest in the asset. The strategy is similar to the ones taken by other firms, such as Semler Scientific, which recently applied to raise a shelf offering of up to 500 million dollars to invest in Bitcoin purchases and other operations. These actions serve as financial plans and branding strategies that move companies toward crypto adoption. However, the long-term effects depend on how the company uses the funds, specifically the amount it invests directly in Bitcoin. When investing a significant percentage in Bitcoin, the balance sheet of the company may become more and more dependent on the variable activity of one digital asset. The view of investors regarding this type of strategy is split, with advocates believing that the scarcity of Bitcoins and their increasingly institutionalized nature make the cryptocurrency a fitting corporate treasury extension. The migration of Next Technology underscores the further growth of treasuries of Bitcoin in corporations, with more firms following this path as the digital asset market grows. Capital markets will increase their Bitcoin exposure and support future financial technologies.