Largest US Pension Fund CalPERS Faces Heavy Losses As Strategy Investment Drops To $80M
California Public Employees’ Retirement System (CalPERS) has been caught on the incorrect aspect of the latest sell-off in Strategy, with its first guess on the Bitcoin proxy inventory sliding from greater than $144m to about $80m in a matter of months.
According to a latest SEC filing, CalPERS acquired 448,157 Strategy (MSTR) shares within the third quarter, paying over $144m for the place. The stake, which gave the fund direct fairness publicity to some of the risky Bitcoin performs in conventional markets, is now value roughly $80m.
In the context of CalPERS, the hit is manageable. The fund manages over $550b in property for greater than 2m public sector staff and retirees, making it the biggest public pension plan within the US, so the Strategy stake represents solely a tiny slice of its portfolio.
Index Risk Looms With JPMorgan Flagging Possible MSCI And Nasdaq Exits
Strategy’s inventory has carried out the harm. The shares closed round $175 on Wednesday and are down about 45% to date this quarter.
The drop largely tracks Bitcoin’s personal swings, in addition to a broader risk-off tone that has weighed on high-beta tech and crypto-related names.
Sentiment has additionally taken a success from Wall Street. JPMorgan analysts not too long ago warned that Strategy could be removed from major equity benchmarks such because the MSCI USA index and the Nasdaq 100. They estimated that MSCI exclusion alone may set off as much as $2.8b in outflows, with extra promoting stress if different index suppliers observe.
Strategy’s spot @MicroStrategy in main indexes is now in danger, with JPMorgan warning {that a} removing from MSCI USA or the Nasdaq 100 may spark billions in outflows.#Strategy #CryptoStocks https://t.co/ozDjakVUm7
— Cryptonews.com (@cryptonews) November 21, 2025
The index angle issues as a result of passive cash is already deeply tied to the identify. Funds that observe benchmarks and maintain Strategy as a part of these indices account for practically $9b of market publicity, and a call on its index standing is anticipated by Jan. 15.
A removing would seemingly pressure a few of these autos to promote, no matter their view on Bitcoin or the corporate.
For a enterprise that constructed its model on wrapping Bitcoin inside an fairness ticker, index danger hits greater than every day volumes. Strategy turned a favoured software for establishments that wished listed market entry to Bitcoin however weren’t prepared to carry the token straight, so any lack of benchmark standing threatens that function as a bridge between conventional finance and crypto.
The firm’s rise adopted a easy sample. It offered inventory into the market, used the proceeds to purchase extra Bitcoin, then leaned on every crypto rally to justify recent issuance and even bigger purchases.
At the peak of that cycle, Strategy’s market worth traded far above the price of its Bitcoin holdings, reflecting a wealthy premium for its aggressive technique.
That premium has largely evaporated. The agency’s valuation now sits solely barely above the worth of its Bitcoin reserves, an indication that traders are now not keen to pay as a lot further for its leveraged play on the asset.
For CalPERS and different massive funds utilizing listed proxies to faucet crypto, the episode is a reminder that Bitcoin publicity packaged in fairness type can nonetheless ship sharp drawdowns when sentiment turns.
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