- 12 U.S. states, including California and Florida, collectively hold $330M in Strategy stock, thanks to its Bitcoin holdings.
- Strategy’s stock has surged 16.5% in 2025 and 383% over the past year.
- States like Utah and Kentucky are introducing bills to allow state funds to invest in cryptocurrency.
Twelve U.S. states have invested heavily in Strategy, the rebranded MicroStrategy, with a combined total of $330 million in stock. California’s state pension funds hold the largest stake, with significant investments also coming from Florida, North Carolina, and Wisconsin.
In response to this trend, several states are now pushing for legislative changes to enable the inclusion of digital assets in public investments. Bills introduced in Utah and Kentucky aim to allow state funds to invest in Bitcoin and other digital currencies.
Crypto Investments Grow in U.S. State Funds Amid Rising Bitcoin Interest
The rise of Bitcoin as a mainstream investment has been mirrored by increasing exposure through corporate stock holdings. Strategy (formerly MicroStrategy) has positioned itself as a leader in Bitcoin investments, with U.S. state pension funds actively participating. States like California, Florida, and Wisconsin hold significant shares in Strategy, which itself owns the largest corporate Bitcoin reserve, currently valued at approximately $46 billion. This growing institutional adoption highlights the appeal of Bitcoin as an asset without the direct risks associated with cryptocurrency ownership.
The impressive 383% rise in Strategy’s stock over the past year has outpaced the broader cryptocurrency market. Institutional investors, such as public pension funds, have flocked to Strategy to gain Bitcoin exposure through its stock. For state funds managing billions in assets, investing in companies like Strategy offers a pathway to diversify portfolios into the burgeoning digital asset sector without having to deal directly with cryptocurrencies.
In addition to private investments, state governments are also taking steps to integrate cryptocurrency into their financial management strategies. Utah has recently passed a bill to allow its treasury to invest in Bitcoin and select altcoins. Other states, including Kentucky, are moving forward with similar legislation, recognizing the potential of digital assets to bolster state revenues in the long term. These legislative shifts are reflective of growing recognition of cryptocurrencies as legitimate financial tools.
While state investments in digital assets grow, risks remain, as seen in the rise of cryptocurrency-related fraud. Recently, a prominent Pune doctor was scammed out of ₹1.71 crore by a Jaipur-based fraudster promising cryptocurrency returns. This case underscores the need for vigilance as the digital currency space continues to attract both investors and criminals.
As more U.S. states dive into Bitcoin-centric investments, the role of digital assets in public finance is rapidly evolving, paving the way for new financial strategies while also highlighting the risks of scams and fraud.
“Investing in Bitcoin through companies like Strategy offers a way for institutional investors to gain exposure to digital assets without directly holding cryptocurrencies.”
