CalSTRS has increased its investment in Strategy, the firm led by Michael Saylor, reinforcing its indirect exposure to the Bitcoin market.
The California State Teachers Retirement System (CalSTRS) has recently reported a significant increase in its investment in Strategy, the firm known for being the largest institutional investor in Bitcoin in the world. Specifically, the fund has acquired 5.191 new shares in the company, as reported in a filing with the Securities and Exchange Commission (SEC).
With this investment, which took place during the fourth quarter of 2024, CalSTRS totals 258.785 MSTR shares held, acquired for an investment of approximately $83 million dollars.
CalSTRS' investment in Strategy highlights the growing interest institutional investors have in the crypto ecosystem.
Strategy, led by Michael Saylor, has been a pioneer in adopting Bitcoin as a core investment strategy. Since 2020, the firm has accumulated a total of 478.740 BTC, making it the largest corporate holder of the cryptocurrency. Furthermore, its focus on Bitcoin is not only limited to the purchase of the cryptocurrency, but also involves its use as a strategic store of value for the company's treasury.
CalSTRS' decision to invest in Strategy can therefore be interpreted as a reflection of the growing acceptance of Bitcoin as a legitimate asset, as the company offers an indirect way for investors to gain exposure to the cryptocurrency. BTC price without the need to buy the cryptocurrency directly. By purchasing Strategy shares, investors can benefit from the growth in Bitcoin's value as the company increases its reserves of this digital asset.
Strategy: The focus point on Bitcoin
Strategy, formerly known as MicroStrategy, has undergone a significant transformation in recent years. What started as a business intelligence company has evolved into a key player in the Bitcoin market. Its investment strategy focuses on accumulating Bitcoin as a store of value, similar to how traditional companies hold cash or bonds in their treasuries.
The firm has been consistent in its approach, buying bitcoins during the cryptocurrency’s bull and bear cycles. Although Bitcoin prices can be volatile, Strategy has adopted a long-term cost averaging strategy, allowing them to smooth out market fluctuations. To date, Strategy has invested over $31.000 billion in Bitcoin, with an average cost per BTC of approximately $65.000.
This focus on Bitcoin has not only made Strategy a go-to for companies looking to adopt cryptocurrencies, but it has also attracted institutional investors like CalSTRS. By investing in Strategy, these investors can gain exposure to the Bitcoin market without having to directly manage the challenges associated with holding cryptocurrency directly.
CalSTRS and its entry into the Bitcoin market through Strategy
CalSTRS, one of the world’s largest pension funds, has demonstrated a growing commitment to financial innovation and investments in emerging assets. Its decision to invest in Strategy reflects a broader strategy to diversify its portfolio and take advantage of the opportunities offered by the growing cryptocurrency market.
CalSTRS’ acquisition of 258.785 shares of Strategy, as of Dec. 31, is no small move, but rather a move that suggests traditional asset managers are increasingly willing to explore options outside of the conventional stock and bond markets. By investing in Strategy, CalSTRS is not only betting on the firm’s success, but also on the long-term growth of Bitcoin’s value.
BUY BITCOINBitcoin attracts pension funds en masse
In addition to CalSTRS' investment in Strategy, the SEC filings highlight the massive entry of pension funds into the cryptocurrency market. California Public Employees Retirement System (CalPERS), another major US fund, also has a significant investment in Strategy. In fact, the fund reported that it owns a total of 264.713 shares of the company, which are valued at around $76 million.
Furthermore, the State Board of Administration of the Florida Retirement System Fund also owns shares of Strategy, worth about $46 million. According to the filing, the estate holds 160.470 MSTR shares as of today.
La Wisconsin State Investment BoardAs well as North Carolina State Treasurer and the Police and Firefighters Retirement System and the New Jersey Common Pension Fund They have also invested in Strategy, maintaining indirect exposure to Bitcoin through this company.
Overall, by purchasing shares of Strategy, CalSTRS and the other pension funds that hold investments in this company are indirectly supporting the continuation of its bitcoin accumulation strategy.
INVITE AND WINTo date, Strategy has used its excess cash and funds raised through debt and equity issuance to purchase more Bitcoin, allowing the company to increase its cryptocurrency reserve significantly. In turn, this accumulation of Bitcoin has contributed to reducing its available supply on the market, which could have a positive impact on its price in the long term.
Finally, the involvement of CalSTRS, CalPERS, and other funds in Strategy could help further legitimize Bitcoin as a serious asset for institutional investors. As more pension funds and corporations follow CalSTRS’ lead, the Bitcoin market is likely to become more stable and mature, attracting even more participants.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
