- U.S. states invest in Strategy stock to gain indirect exposure to Bitcoin.
- California leads with major investments; twelve states have put over $330 million into Strategy.
- New laws and Strategy’s “21/21 Plan” show strong future momentum despite recent losses.
Several U.S. states, including California, Florida, Wisconsin, and North Carolina, are making significant moves by investing in Strategy stock formerly known as MicroStrategy as a way to gain indirect exposure to Bitcoin.
With Strategy’s aggressive Bitcoin acquisition strategy driving its stock performance, state pension funds and treasuries see this as an attractive way to benefit from Bitcoin’s long-term potential without directly buying the cryptocurrency.
State Investments and Bitcoin Exposure on Strategy
California leads the charge, with its State Teachers Retirement System holding 285,785 shares worth about $83 million and CalPERS owning 264,713 shares valued at around $76 million. By the end of 2024, twelve U.S. states had collectively invested over $330 million in Strategy’s stock.
This growing trend isn’t limited to the U.S.; international investors, including Canada’s Healthcare of Ontario Pension Plan and South Korea’s National Pension Service. That have also taken substantial positions. Strategy’s unique appeal lies in its massive Bitcoin holdings (478,740 BTC, worth an estimated $46 billion). Which have helped its stock surge by 383% over the past year, far outpacing the broader crypto market.
Legislative Momentum and Future Outlook
Beyond state investments, proposed legislations like West Virginia’s Inflation Protection Act signal a broader interest in integrating digital assets into public portfolios. Such initiatives pave the way for further adoption of innovative investment strategies that leverage indirect exposure to Bitcoin through Strategy.
Despite challenges highlighted by a $670.8 million loss in Q4 2024 due to a Bitcoin impairment charge—Strategy remains committed to its long-term “21/21 Plan” to raise $42 billion for expanding its Bitcoin portfolio, reinforcing the bullish outlook on digital assets in public investment portfolios.
As U.S. states continue to diversify their investments and explore digital asset opportunities, the Strategy stock model offers a compelling route to tap into the growing potential of Bitcoin without directly managing the inherent risks of cryptocurrency markets.
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