Florida’s Foray into Cryptocurrency, State Pension Funds and Legislative Initiatives
By Space Coast Daily // March 20, 2025
Twelve US states, Florida included, have reported holdings in Strategy (formerly MicroStrategy) stock within their state pension funds and treasuries as of the end of 2024, totaling a substantial $330 million.
This trend underscores a growing institutional interest in cryptocurrency exposure, particularly Bitcoin, through conventional investment vehicles.
The Rise of Strategy
Strategy, under the leadership of CEO Michael Saylor, has positioned itself as a prominent business intelligence firm with a significant stake in Bitcoin. The company’s strategic pivot to accumulate Bitcoin has made its stock (MSTR) a proxy for investors seeking cryptocurrency exposure without directly holding digital assets.
As the crypto market evolves, discerning investors are exploring assets with robust fundamentals and community support. According to crypto expert Ines S. Tavares, there’s no better time than now when it comes to investing in cryptocurrency. They admit the market might not stand in the best position, but there are major developments that are making changes. Among top crypto to buy, Tavares recommends established cryptocurrencies such as Bitcoin, Ethereum, and XRP, as well as some new projects like Solaxy and Mind of Pepe. The global support for crypto is growing, especially after Trump’s return to office which is likely to bring regulatory support, if everything goes as advertised.
State Pension Funds Betting on Strategy
The involvement of state pension funds in Strategy stock highlights a notable shift towards integrating cryptocurrency exposure into traditional investment portfolios. Some of the key players are California, Florida, Wisconsin, and North Carolina.
The California State Teachers’ Retirement System (CalSTRS), the nation’s second-largest public pension fund, significantly increased its holdings in Strategy during the fourth quarter of 2024. CalSTRS acquired an additional 5,191 shares, nearly doubling its MSTR holdings from $42.7 million at the end of the third quarter to $82.7 million by December 31, 2024. This move aligns with CalSTRS’ investment strategy, which involves both passive and active management.
Similarly, the California Public Employees’ Retirement System (CalPERS) holds a substantial stake in Strategy, with 264,713 shares valued at approximately $76 million. CalPERS also maintains a $79 million position in Coinbase stock, reflecting a broader strategy to gain exposure to the cryptocurrency market.
Florida’s engagement with cryptocurrency extends beyond indirect exposure through Strategy stock. Republican Senator Joe Gruters introduced Senate Bill 550, proposing that the state’s Chief Financial Officer be authorized to invest up to 10% of certain public funds in Bitcoin and other digital assets. The bill emphasizes Bitcoin’s potential as a hedge against inflation and its growing acceptance as a medium of exchange. This legislative initiative reflects a proactive approach to integrating digital assets into the state’s investment portfolio.
The State of Wisconsin Investment Board holds 100,957 shares of Strategy, valued at around $29 million. Meanwhile, the Treasurer of the State of North Carolina has invested $22 million in MSTR. These investments indicate a calculated move to diversify state pension funds with assets linked to the cryptocurrency market.
When it comes to other states, in New Jersey the Police and Firemen’s Retirement System and Common Pension Fund collectively hold $26 million in MSTR shares. Other regions like Arizona, Colorado, Illinois, Louisiana, Maryland, Texas, and Utah have reported holdings in Strategy stock within their public funds, collectively contributing to the $330 million total investment.
Strategy’s Bitcoin Holdings
Strategy’s aggressive accumulation of Bitcoin has made it the world’s largest corporate holder of cryptocurrency, with 478,740 coins valued at approximately $46 billion at current prices. This substantial holding amplifies the cryptocurrency exposure of any investor in Strategy stock, including state pension funds.
In early February 2025, Strategy acquired an additional 7,633 BTC at an average price of $97,255 per coin, further solidifying its commitment to Bitcoin as a strategic asset. This move underscores the company’s belief in Bitcoin’s long-term value proposition and its role as a hedge against traditional market volatility.
The Rebranding to Strategy
On February 5, 2025, the company formerly known as MicroStrategy rebranded itself as “Strategy”. This rebranding reflects the company’s deepening commitment to the cryptocurrency space and its desire to position itself at the forefront of the digital asset revolution.
Strategy’s stock (MSTR) has demonstrated remarkable performance, gaining 16.5% since the beginning of 2025 and soaring 383% since the same time in 2024. This surge has outpaced the broader cryptocurrency market, which has seen a 62% increase over the past 12 months. This disparity highlights investors’ recognition of Strategy’s unique position as a bridge between traditional finance and the cryptocurrency market.
Florida’s Pioneering Legal Actions in Cryptocurrency
Not everything was so great for crypto laws and Florida at the beginning. In 2016, the state made headlines with the case of State v. Espinoza, where a Miami-Dade judge dismissed charges against a man accused of illegally selling Bitcoin, stating that Bitcoin was not considered money under Florida law at that time. This case highlighted the need for clear regulatory frameworks concerning digital currencies.
Responding to such challenges, Florida’s legislature enacted House Bill 1379 in 2017, which explicitly included virtual currencies within the definition of monetary instruments under the state’s Money Laundering Act. This legislative move aimed to close legal loopholes and ensure that cryptocurrency-related crimes could be prosecuted effectively, setting a precedent for other states grappling with similar issues.
Educational Institutions Embracing Cryptocurrency
Florida’s engagement with cryptocurrency extends beyond legislation and investment; educational institutions in the state have also embraced the digital currency movement. For instance, in 2014, the University of Florida established the Bitcoin Club to promote awareness and understanding of Bitcoin and other cryptocurrencies among students. This initiative provided a platform for discussions, workshops, and networking opportunities related to blockchain technology and its applications.
What’s more, the state’s universities have incorporated blockchain technology into their curricula. The University of Florida’s Warrington College of Business offers courses on blockchain and fintech, preparing students for careers in the rapidly evolving digital economy. Such educational initiatives underscore Florida’s commitment to fostering innovation and staying ahead in the cryptocurrency landscape.
Friendly Businesses and Communities
Florida’s cities, particularly Miami, have become hubs for cryptocurrency adoption. In 2021, Miami’s Mayor, Francis Suarez, announced plans to make Miami a “crypto-friendly city,” proposing to allow residents to pay taxes and receive salaries in Bitcoin. This initiative attracted cryptocurrency investors and startups, bolstering the local economy and reinforcing Miami’s image as a forward-thinking metropolis.
The annual Bitcoin Conference, one of the largest events in the cryptocurrency industry, chose Miami as its host city starting in 2021, drawing thousands of enthusiasts, investors, and innovators worldwide. This event has solidified Florida’s position as a central player in the global cryptocurrency community.
Final thoughts
Florida’s strategic investments in Strategy stock and the introduction of SB 550 underscore the state’s proactive stance on cryptocurrency adoption. These efforts aim to diversify investment portfolios, hedge against inflation, and position Florida at the forefront of financial innovation in the public sector.
