Government Entities Boost Strategy (MSTR) Holdings to Access Bitcoin Amid Regulatory Restrictions, Standard Chartered Reports

Government-backed investors are increasingly turning to Strategy (MSTR) shares to obtain bitcoin exposure in jurisdictions where direct cryptocurrency ownership faces regulatory hurdles, according to a new report from Standard Chartered (STAN) released Tuesday.

Data from the U.S. Securities and Exchange Commission (SEC) reveal that government funds significantly expanded their positions in Strategy during Q1 2025. Geoff Kendrick, head of digital assets research at Standard Chartered, emphasized that “MSTR holdings by government entities often represent a workaround to local regulatory barriers against direct bitcoin holdings.”

Strategy, the firm credited with pioneering the corporate bitcoin treasury approach, currently holds approximately 576,230 BTC on its balance sheet, valued near $59 billion at current prices.

The report identifies notable purchases by several government bodies: Norway’s Government Pension Fund and the Swiss National Bank (SNB) both increased their MSTR exposure by about 700 BTC equivalents in the first quarter. South Korea’s National Pension Service and Korea Investment Corporation also collectively added roughly 700 BTC worth of shares.

In the U.S., state retirement systems from California, New York, and North Carolina expanded their Strategy holdings by the equivalent of 1,000 BTC. Additionally, Sweden’s AP Funds and Liechtenstein’s Landesbank made modest increases.

For the first time, France’s Caisse des Dépôts et Consignations (CDC) and the Saudi Central Bank took small positions in Strategy during this period.

Despite these government-backed fund increases, the report highlights a disappointing trend in direct bitcoin ETF holdings during Q1.

Nevertheless, Standard Chartered remains optimistic about bitcoin’s outlook. The bank points to recent 13F filings that bolster its thesis predicting bitcoin could surge to $500,000 before former President Trump leaves office, driven by expanding institutional demand.