The California Public Employees' Retirement System (CalPERS), the largest U.S. state pension fund, has increased its exposure to Bitcoin through an investment in MicroStrategy ($MSTR). According to a disclosure, CalPERS has purchased 183,444 shares of MicroStrategy so far in 2025, with the position valued at approximately $29 million. This allocation, while modest relative to CalPERS' overall portfolio, is notable as it represents a deliberate move by a major institutional investor to gain indirect Bitcoin exposure through a publicly traded company.
Separately, New Jersey's $9.5 billion pension fund has also significantly boosted its stake in MicroStrategy, increasing its holdings to a value of $16 million. This move strengthens the fund's indirect exposure to Bitcoin, as MicroStrategy is the world's largest corporate holder of BTC.
These investments highlight a growing trend among traditionally conservative institutional investors, such as public pension funds, to engage with Bitcoin. Rather than holding digital assets directly, these institutions are opting for exposure through equities like MicroStrategy, whose performance is closely tied to Bitcoin's price. This approach allows them to participate in Bitcoin's potential upside while operating within familiar traditional finance (TradFi) frameworks and mitigating direct custody and operational concerns.
The actions by CalPERS and New Jersey signal a shifting perception of cryptocurrencies among institutional decision-makers, driven by increasing regulatory clarity and growing confidence in Bitcoin as a long-term store of value. Financial experts view these moves as early indicators of a deeper institutional shift, as states, banks, and major financial players gradually enter the crypto space.
