Louisiana Bets on Bitcoin Proxy

Louisiana retirement fund reveals $3.2 million Bitcoin-linked equity bet

Louisiana’s main public retirement system has quietly increased its crypto footprint by using microstrategy stock as an indirect way to tap into Bitcoin’s price performance.

The Louisiana State Employees’ Retirement System (LASERS) has disclosed a $3.2 million position in Strategy Inc. (MSTR), highlighting how public funds are turning to equity markets for Bitcoin exposure instead of buying the asset directly.

According to the latest portfolio report, LASERS holds 17,900 MSTR shares in the Bitcoin-focused software company. At the time of the disclosure, the microstrategy stock price was about $179 per share, valuing the stake at roughly $3.2 million.

LASERS joins other US public funds using MSTR as a Bitcoin proxy

LASERS oversees approximately $15.6 billion in retirement assets for Louisiana state employees. Its new MSTR allocation signals a broader effort to gain institutional bitcoin proxy exposure via regulated securities. Moreover, the fund is moving in step with other US public pensions exploring Bitcoin through listed companies.

This approach places Louisiana alongside New York’s public fund, which boosted its own MSTR holdings to $50 million in December 2025. While Louisiana’s position is smaller in dollar terms, it reinforces the trend of state-level institutions using corporate balance sheets as a bridge into crypto markets.

In addition to MSTR, the LASERS portfolio features large positions in leading US technology names, including Nvidia, Apple, Microsoft, Amazon, and Alphabet. That said, the MSTR allocation stands out because it is directly linked to Bitcoin reserves rather than traditional software revenues.

MicroStrategy’s 190,000+ BTC stack underpins the investment case

Strategy, chaired by Michael Saylor, has transformed from an enterprise software provider into one of the most aggressive corporate buyers of Bitcoin. As of its most recent filing, the company holds more than 190,000 BTC on its balance sheet.

The firm recently purchased 13,627 BTC for $1.25 billion, paying an average of $91,519 per coin. However, this accumulation strategy has also increased the company’s sensitivity to crypto market swings, making its equity behave more like a leveraged Bitcoin instrument than a conventional tech stock.

Bitcoin itself recently surged above $97,000 before sliding back below $93,000, underlining the volatility that funds accept when they use listed vehicles for microstrategy bitcoin exposure. Despite the choppy price action, Strategy’s reported market net asset value (mNAV) stands at 1.07, showing the shares trade at a premium to the underlying Bitcoin value.

Market performance, upside hopes, and valuation premium

Many institutional investors treat MSTR as a de facto Bitcoin tracker with corporate leverage. Louisiana’s $3.2 million bet suggests that LASERS expects Bitcoin to recover and potentially push MSTR closer to its 12‑month peak near $450. Moreover, the position comes despite significant recent downside in the share price.

Over the past six months, Strategy shares have fallen by 61%, reflecting both crypto sector weakness and concerns over the company’s debt-fueled expansion. However, the stock gained 4% last week and closed Friday up 1.6% at $173, signaling renewed buyer interest after the steep drawdown.

For long-term allocators, the current stock price microstrategy level may appear attractive relative to previous highs, although the ongoing premium to mNAV highlights that investors are still paying extra for access to the Bitcoin treasury and Saylor’s strategy.

Criticism of Strategy’s model and leverage-heavy approach

The company’s heavy reliance on Bitcoin accumulation has drawn scrutiny from parts of Wall Street and the crypto industry. Some observers argue that its dependence on new capital makes the business inherently risky, especially during prolonged bear markets.

Financial analyst Herb Greenberg has gone as far as labeling Strategy a “quasi Ponzi scheme,” pointing to limited operating income from core software products and frequent use of debt and equity offerings to finance Bitcoin purchases. That said, supporters counter that the firm is effectively operating as an alternative asset vehicle rather than a traditional software house.

Michael Saylor has repeatedly defended the playbook. In an interview with CNBC, he compared Strategy’s financing model to property developers in New York, arguing that “just like developers in Manhattan issue more debt when real estate rises, we use similar methods” to expand Bitcoin holdings during bull cycles.

Public funds lean into crypto-linked equities

Public retirement funds increasingly favor crypto-linked equities instead of direct token custody, citing regulatory clarity and established market infrastructure. In that context, microstrategy stock offers a familiar brokerage-based route for gaining crypto exposure within existing compliance frameworks.

Strategy has also experimented with preferred share offerings branded under names such as “Strike” and “Stretch”. These instruments promised fixed dividends structured around Bitcoin performance, effectively blending traditional income features with crypto-linked upside. However, they also introduce complexity for risk managers assessing capital structure and payout conditions.

According to Saylor, these products fit into a broader effort to make Strategy function like a high-beta Bitcoin vehicle for equity investors. He has said that while the stock is “not a high-yield bank account,” it can resemble one during strong bull phases when Bitcoin prices surge and balance sheet gains widen.

Institutional adoption through regulated structures set to grow

The LASERS move adds Louisiana to a growing list of US states experimenting with digital asset exposure through listed companies and other regulated structures. Moreover, it underscores how pension managers are seeking upside from crypto markets while attempting to avoid direct custody and on-chain operational risks.

As Bitcoin’s market cap expands and more corporates follow Strategy’s playbook, analysts expect additional public retirement fund investment via equities and structured products. For now, Louisiana’s $3.2 million stake may be modest relative to its $15.6 billion in assets, but it marks a clear signal that crypto-linked strategies are entering mainstream institutional portfolios.

In summary, Louisiana’s allocation to MSTR highlights the growing role of regulated, Bitcoin-heavy companies in bridging traditional pensions and digital assets, even as volatility, leverage, and business-model concerns continue to drive debate around the long-term sustainability of this approach.