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The California State Teachers' Retirement System (CalSTRS), which is the third-largest public pension fund in the U.S., has indirectly invested $133 million in Bitcoin through its investment in MicroStrategy (MSTR).
This is one of the biggest pension fund investments in digital assets, and it shows that some traditional institutions are becoming more open to investing in crypto. CalSTRS received its exposure by buying 25,346 shares of MicroStrategy, or $34.9 million as per its portfolio.
MicroStrategy, now known as Strategy Inc., owns more than 629,000 BTC valued at over $71 billion, and consequently, owning MicroStrategy stock is economically equivalent to being a levered long position in Bitcoin.
Thus, CalSTRS's investment in MSTR has effectively linked part of educators' retirement assets to the performance of the largest crypto in the world.
CalSTRS also holds big stakes in other blue-chip tech stocks, according to the filing, including 12.2 million shares of Microsoft (valued $5.48 billion) and 1.9 million shares of Micron Technology (worth $250 million). While these are still much greater allocations than its MicroStrategy stake, the MSTR investment stands out due to its direct tie to Bitcoin.
However, the decision carries risks. As Strategy's stock price is highly correlated with Bitcoin's swings, CalSTRS is indirectly exposed to the volatility in the crypto market.
Still, the move can be seen as a historic moment, given that one of the largest pension funds in the nation is willing to take Bitcoin-linked exposure; others may also take that leap.
This disclosure comes just weeks after President Donald Trump issued an executive order on August 7 that allows cryptocurrencies and other alternative assets to be incorporated in 401(k) retirement plans.
As of August 19, MicroStrategy's valuation was about $96 billion, strengthening its status as a Bitcoin proxy.
