Key Points
- U.S. state pension funds and treasuries hold $330 million in Strategy shares, indicating institutional interest in Bitcoin.
- Strategy, previously MicroStrategy, is the world’s largest corporate holder of Bitcoin with 478,740 BTC valued at around $46 billion.
MicroStrategy, now known as Strategy, has a long-standing presence in the cryptocurrency world, primarily due to its aggressive Bitcoin (BTC) acquisition approach.
Recently, the firm made headlines as it was revealed that several U.S. states have made significant investments in its stock. As of late 2024, U.S. state pension funds and treasuries collectively own $330 million worth of Strategy shares, indicating increasing institutional confidence.
U.S. States’ Stake in Strategy
Bitcoin analyst Julian Fahrer highlighted that states like California, Florida, Wisconsin, and North Carolina have significant exposure, which has sparked conversations about the firm’s growing influence in the crypto and financial sectors.
For instance, as of February 14th, the California State Teachers Retirement System fund owns the largest stake, with 285,785 shares valued at approximately $83 million. This fund, which manages $69 billion in stock investments, also has a significant 306,215 shares of Coinbase, worth $76 million.
Strategy’s Bitcoin Investments
Strategy’s consistent Bitcoin purchases, such as the recent acquisition of 7,633 BTC in February 2024, further solidify its standing as a major player in the market. The firm’s rebranding as “Strategy” ahead of its Q4 earnings report emphasizes its commitment to Bitcoin, branding itself as the first “Bitcoin Treasury Company.”
Despite a 74.3% yield on its Bitcoin holdings for 2024, Strategy faced increasing expenses, particularly a $1.006 billion loss on digital assets, resulting in a net loss of $670.8 million for the quarter.
These events have undoubtedly influenced the price of Strategy’s stock, which saw a 3.04% increase, reaching $337.73 according to Google Finance. In contrast, Bitcoin saw a slight decrease of 1.47%, trading at $96,237.28.
While the market sentiment for Bitcoin remains uncertain, Strategy’s bullish moves reflect growing institutional adoption. Despite short-term losses, the firm’s aggressive Bitcoin acquisition strategy and rebranding may continue to make it a significant player in the crypto market in the future.
