12 US States Invest $330M in Strategy (MSTR)

Key Takeaways:

• State pension funds are pumping millions of dollars into Strategy (MicroStrategy), a firm that invested in Bitcoin.
• California is the top state, which is leading to doubts about the risk in teachers’ retirement funds.
• This is indicative of the growing utility of cryptocurrencies, but the vulnerability of the retirees should also be taken into consideration.
  

We have been continuously reminded to not put all our eggs in one basket when it comes to retirement preparations. We are told to instead distribute our investments among different asset classes to reduce the level of risk that we are exposed to. But, what will the future be like if these diversified portfolios get gradually more involved in the virtual world of cryptocurrency market?

An analysis indicates about 12 US states collectively having around $330 million in Strategy (MSTR). The company in question, Strategy, is a publicly traded firm known for its substantial Bitcoin holdings. This is news that warrants numerous questions: Are you really comfortable with your pension dollars turning into crypto without you even knowing about it?

A Closer Look at the Data: Cryptocurrency Investments by State Pension Funds

Crypto advisor Julian Fahrer disclosed that between the end of 2024 and the present, state pension funds and treasuries from twelve North American states disclosed their Strategy (formerly MicroStrategy) holdings as $330 million. This is a significant investment that deserves special attention. It also is interesting to follow Julian, for example, on Twitter.

Let’s take a moment to ponder this: People’s retirement funds, which are responsible for the economic stability of millions of Americans, are making a deliberate choice to purchase a company that believes completely in Bitcoin. The repercussions are very drastic, one effect of which is the financial future of the usual retirees and financial casualties. Existence can be seen as a productive step by some, while to others it may be an uncalled-for risk.

WHICH STATES ARE LEADING THE CHARGE?

Citing Julian Fahrer’s analysis, the states with the most significant risk from Strategy are California, Florida, Wisconsin, and North Carolina.

The place to be is the California State Teachers’ Retirement System (CalSTRS), which stands as the leading shareowner of Michael Saylor’s business intelligence software firm. CalSTRS, in the February 14th SEC filing in the United States, had 285,785 shares of Strategy. This is equivalent to about $83 million.

Suppose a teacher, who has spent their life making a difference in the intellectual development of his/her students, is now faced with the scenario of their future retirement being both positively and negatively intertwined with the ever-changing values of Bitcoin. The news can cause a range of feelings; one can be excited or apprehensive about it, depending on his/her viewpoint on cryptocurrency.

Intriguingly enough, CalSTRS, which has stocks of nearly $69 billion, also has stakes in the shares of Coinbase (COIN) with 306,215 shares that cost them $76 million, to be exact, in total.

The California Public Employees’ Retirement System (CalPERS) has a high share in Strategy stock as well, keeping 264,713 shares at almost $76 million, along with also being the owner of $79 million worth of Coinbase stocks. This retirement fund oversees decisions about $149 billion in investments.

Holdings of California State Teachers Retirement System MSTR. Source: SEC

State-by-State Breakdown of Strategy (MSTR) Holdings

Let’s kick things off with a more detailed look at how states are pouring their funds into other places:

• The State Board of Administration of Florida Retirement System holds 160,470 Strategy shares, worth $46 million.
• The State of Wisconsin Investment Board holds 100,957 shares, valued at around $29 million at the time of filing.
• The Treasurer of the State of North Carolina has $22 million worth of MSTR.
• New Jersey’s Police and Firemen’s Retirement System and the Common Pension Fund collectively hold $26 million worth.

Other states with Strategy stock in their public funds include Arizona, Colorado, Illinois, Louisiana, Maryland, Texas, and Utah, as reported by Fahrer.

What’s Driving This Trend? Understanding the Allure of Strategy (MSTR)

The main reason Strategy is attracting investors is that they are one of the largest holders of Bitcoin among global corporations, including pension funds. As of this writing, the company holds a total of 478,740 Bitcoin, which is worth over $46 billion at this price level. Owning stock in Strategy is one of the ways that people invest to get into an asset that is very difficult to buy, sell or trade directly.

The company actually secured 7,633 more BTC for $97,255 per coin between February 3 and February 9.

The decision made by pension funds to do an investment with Strategy is something in the past that has happened. Some of them have dealt with the digital money market by buying Bitcoin or altcoins directly, by investing in the companies that mine cryptocurrencies, or through crypto ETFs. Nevertheless, the strategies that are implemented by different pension funds can be widely different because of the variative degree of acceptance of the risk, and investment needs.

The Impact of Bitcoin on Strategy (MSTR) Stock Performance

Without any pun intended, this has surely turned the tide for the Strategy shareholders. In comparison, the price of MSTR has risen by an impressive 383% from the same time last year, while the broader crypto market has only grown by 62% in the past 12 months. This occurred because Bitcoin has managed to keep its value high, which is obviously the same for the Strategy shares.

Strategy: More Than Just Bitcoin?

Even though Bitcoin is the cornerstone of Strategy’s existence, one should not overlook the fact that it is a pre-cryptocurrency-boom company. Michael Saylor, the founder of MicroStrategy, made his debut in 1989. His software business provides data analytics and business reports. However, he is a major zealot for Bitcoin who maintains that the digital currency is the best store of value.

More News: MicroStrategy Starts 2025 by Buying 1,070 Bitcoin with a Total Value of $101 Million

Striking a Balance: Risk vs. Reward in the New Financial Landscape

The association between the conventional financial system and the cryptocurrency part has become firm. Pension funds, known as some of the most cautious investors, are increasingly allocating funds to Bitcoin. This trend is allowing the crypto asset to gradually become a new asset class. Nevertheless, it is an indispensable condition to check risks and measures are taken proportionally.

The use of public pension funds to such a volatile asset class raises questions regarding how appropriate it is. Although Bitcoin has enough breakouts, it also has a lot of serious risks, such as regulatory uncertainty, market manipulation, and security issues. What is the trend that could make this a common practice within the next few years, that is, will the influx of money into cryptocurrencies continue?

It must be admitted that the financial landscape is very interesting, either because of a long-term reward or due to a risk.

The post 12 US States Invest $330M in Strategy (MSTR) appeared first on CryptoNinjas.

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