US States Invest $632 Million in MicroStrategy in Q1 2025

• Lyla Velez
• December 14, 2025
• Investment
• 0 Comments

Fourteen US states collectively expanded their holdings in MicroStrategy (MSTR) stock to $632 million in Q1 2025, up from $330 million in Q4 2024, gaining indirect Bitcoin exposure.

States’ increased MicroStrategy investments reflect a shift toward Bitcoin exposure, influencing financial strategies but impacting direct crypto market actions minimally.

Fourteen US states increased their collective MicroStrategy holdings from $330 million in Q4 2024 to $632 million in Q1 2025, primarily involving public retirement and treasury funds. This marked an increase of 91.5% within three months. Key players include state pension funds from California and Florida, with entities like New Jersey’s Police and Firemen’s Retirement System also showing significant elevations. Despite this growth, no direct Bitcoin purchases were reported.

These investments affected MicroStrategy stock, which saw a 37% year-to-date gain in 2025, reaching a peak at $430 before declining to $397. This interest signals a strategic choice for institutional Bitcoin exposure while avoiding direct cryptocurrency purchase complexities.

The decision points to institutional interest in indirect Bitcoin exposure while demonstrating preference for regulated assets, like MicroStrategy, over Bitcoin ETFs. With collective state interest growing, market impacts could include increased reliance on firms with substantial cryptocurrency reserves.

Wisconsin’s divestment from a $300 million Bitcoin ETF underscores a growing favor for MicroStrategy stocks. Julian Fahrer, founder of Bitcoin Laws, noted, “A collective increase of $302m in one quarter. The average increase in holding size was 44%.”

Potential regulatory, financial, and technological outcomes may include increased market stability and future legislative interest in Bitcoin-related assets. This trend, combined with MicroStrategy’s strategic moves in capital markets, invites broader implications for institutional approaches to cryptocurrency engagement.