US states invest $632M in MSTR, despite recent veto on a Bitcoin reserve bill

This week in crypto, Bitcoin (BTC) reached record highs of $111,980 and more optimistic predictions emerged. US states' investment trends and regulatory developments dominated the spotlight

The crypto market had a notably bullish week, with Bitcoin (BTC) reaching record highs of $111,980 and more optimistic predictions emerging. Meanwhile, US states’ investment trends and regulatory developments dominated the spotlight.

Here is a roundup of some of the most important developments in the crypto market this week.

14 US States Disclose $632 Million Stake in MSTR

One of the most noteworthy developments in the crypto sphere this week was the disclosure of US states’ massive $632 million holdings in Strategy’s (MSTR) preferred stock.

As reported by BeInCrypto earlier, the institutions saw a 42% increase in their MSTR stock holdings in Q1 2025.

Specifically, 14 states reported their holdings in MSTR for the quarter in public retirement and treasury funds. Among them, California, through its state teachers and public retirement fund, had the largest exposure, amounting to $276 million in MSTR shares.

Following closely were Florida, North Carolina, and New Jersey, each with an MSTR stock exposure of over $100 million. Notably, despite a recent veto on a Bitcoin reserve bill, Arizona also increased its holding of MSTR.

Other states, such as Utah and Colorado, displayed substantial growth in their MSTR investments. Notably, Utah's holdings more than tripled, while Colorado's investment grew by 184% in the last quarter.

Conversely, while boosting its MSTR position by 26%, the Wisconsin Investment Board sold off its entire $300 million stake in BlackRock’s Bitcoin ETF.

This pattern highlights that Strategy, the largest corporate holder of Bitcoin (576,230 BTC), has become a preferred choice for states seeking indirect exposure to crypto without dealing with the complexities of direct ownership.

Pi Network’s 86 Million Token Withdrawal From OKX

Pi Network has been a hot topic in the crypto sphere, especially after the launch of its open network in late February.

This week, Pi Coin (PI) made headlines again as its price surged by 11%. As reported by BeInCrypto, the factor behind this price uptick was the withdrawal of 86 million tokens from the OKX exchange, reducing the platform’s PI token balance to just 21 million.

This mass movement suggested that investors were holding rather than selling, which is a bullish signal often associated with confidence in future price appreciation.

"This isn't just a withdrawal—it's a POWER MOVE by the Pi community. Scarcity is kicking in, and the market is feeling the heat!" a Pioneer posted on X.

However, the high was fleeting. After the rise, more declines followed. Over the past day alone, Pi Coin’s value depreciated by 4.7%.

At the time of writing, it traded at $0.79.

Along with its underwhelming price performance, Pi Network has faced significant criticism due to its inability to secure a listing on major exchanges like Binance or Coinbase. Concerns regarding its lack of recognition on price tracking platforms, token distribution, node centralization, and migration challenges further add to the growing list of issues.

Blum Co-Founder Arrested in Moscow

In other crypto news this week, the co-founder of the Telegram-based crypto project Blum was arrested in Moscow.

On May 18, the Zamoskvoretsky District Court in Moscow ordered the arrest of Vladimir Smerkis, who previously managed Binance’s operations in Russia. Smerkis is accused of committing ‘large-scale fraud.’

"The Zamoskvoretsky District Court granted the investigator's petition for the preventive measure of detention for Vladimir Smerkis, who was arrested in connection with a case of large-scale fraud (Article 159 of the Criminal Code of the Russian Federation), and the Public Prosecutor's office in Moscow." local media reported.

In response to the arrest, Blum quickly distanced itself from Smerkis and his involvement in the project.

"We would like to inform our community that Vladimir Smerkis has stepped down from his role as CMO and is no longer involved in the development of the project or in any co-founder capacity," Blum's official statement read.

Fred Krueger Predicts Bitcoin Could Reach $600,000 by October 2025

This week in crypto, Bitcoin took center stage with its impressive rally. As reported by BeInCrypto, BTC reclaimed its all-time high of $108,900 after four months.

However, the rally didn't stop there, as the price continued to climb. Yesterday, BTC peaked at a new record of $111,980, a high yet to be surpassed.

Annually, BTC's price tends to peak around the fourth quarter of the year, and this