State Pension Funds Dive Into Crypto: $632M Bitcoin Bet Spread Across 14 US Portfolios
Wall Street’s old guard never saw this coming—state treasuries are now stacking SATs like degenerate millennials. Fourteen public investment funds now hold a combined $632 million in crypto strategies, according to May 2025 disclosures.
Breaking Down the Bags
From Texas teachers’ pensions to Ohio’s municipal coffers, institutional adoption isn’t coming—it’s already here. The positions represent a mix of spot Bitcoin ETFs, treasury strategies, and direct custody solutions (because apparently some bureaucrats actually learned from FTX).
The Fine Print
While the sum represents less than 0.3% of total AUM for these funds, the political symbolism cuts deep. Pension managers—typically allergic to volatility—are now implicitly endorsing an asset class that still moves 5% before breakfast. Maybe they’ve finally realized 2% Treasury yields won’t cover those six-figure public sector retirements.
Strategy Shares Fill Pension Portfolios
According to data from Julian Fahrer, these public funds boosted their holdings by 302 million in Q1 2025. That is an average increase of 44% in their position sizes. Strategy’s shift into Bitcoin has made its stock act like a stand‑in for the digital asset. Trustees who worry about custody or rule changes can trade MSTR shares just like any other stock.
Coast To Coast Buying Spree
California leads the charge with 694,119 shares worth about 276 million. In Florida, public plans hold 221,860 shares, roughly 88 million in value. Wisconsin has 127,528 shares, or 51 million.
NEW: 14 US states have reported $632m in $MSTR exposure for Q1, in public retirement and treasury funds.
A collective increase of $302m in one quarter. The average increase in holding size was 44%. pic.twitter.com/0PKm1avcPR
— Julian Fahrer (@Julian__Fahrer) May 15, 2025
North Carolina’s balance sheets show 107,925 shares (43 million), Ohio holds 80,381 shares (32 million), and Texas has 72,595 shares (29 million). Other states such as Arizona and New Jersey have taken smaller positions too. This trend can be seen showing up from Salt Lake City to Raleigh.
Rapid Growth In Some StatesUtah’s retirement systems stand out with an increase of 184%, owning 25,287 shares. Colorado climbed 67% higher. Florida’s stake ROSE 38%, Texas by 33%, and Louisiana by 30%. Maryland and New Jersey also chipped in more this quarter. It looks like some boards felt a sudden rush to get on board, while others moved more slowly.
Based on reports, lawmakers in 26 states have filed 47 crypto‑related bills so far this session. About 37 of those are still active. New Hampshire approved a law earlier in May letting up to 5% of its treasury go into Bitcoin.
In Arizona, voters green‑lit crypto uses for unclaimed assets but shot down direct bitcoin investing by the treasury. Florida saw similar measures stalled in committee. These moves show that some politicians want to let public funds handle Bitcoin directly, but others aren’t ready.
Risk And Reward On The HorizonPension funds need steady returns to meet future payouts. Bitcoin’s gains have been eye‑catching. Yet the coin is known for big swings. Strategy shares often magnify those moves. If Bitcoin slides suddenly, state funds could take a big hit.
On the flip side, another strong rally would make these holdings look smart. For now, public managers seem to be testing the waters. They’re getting a taste of crypto upside, but with familiar stock rules keeping the safety net in place.
Featured image from Unsplash, chart from TradingView
