The Michigan State Retirement Fund has increased its holdings in Strategy (formerly MicroStrategy) by 141%, bringing its total position to 14,000 shares valued at roughly $1.34 million. The disclosure, first reported by Binance News based on data from BitcoinTreasuries.NET, highlights a growing trend of public pension funds seeking indirect bitcoin exposure through equity in companies with large bitcoin reserves.
Concurrently, Strategy announced a shift in its capital allocation playbook after reporting no bitcoin purchases for the third straight week. The company confirmed it will continue to sell bitcoin when management deems it supportive of the balance sheet, and future capital raises will no longer flow entirely into BTC. Instead, proceeds will be dynamically divided between further bitcoin acquisitions and U.S. dollar reserves depending on market conditions. The move expands Strategy’s cash war chest, which now stands at $3.75 billion after selling 5.42 million Class A shares and generating $544.5 million in net proceeds.
During the second-quarter earnings call, management reiterated it is not considering bitcoin-backed borrowing due to counterparty and margin risks. The updated framework provides greater liquidity flexibility while still maintaining a massive bitcoin portfolio of 843,775 BTC, acquired at an average price of $75,476 per coin. This revised approach marks a departure from the previous strategy of directing nearly all new capital toward bitcoin purchases.
The Michigan pension fund’s vote of confidence and Strategy’s strategic pivot come amid a broader institutional normalization of digital assets. Although the dollar amount invested by Michigan is modest, the 141% increase signals deliberate portfolio positioning within a long-term, risk-managed public retirement system. MSTR stock rose 4.73% on Thursday following the announcements, touching near $98 before a modest pullback, indicating market approval of the more flexible treasury strategy.
