11 State Pension Funds Lose 60% on Strategy Shares As Bitcoin Declines

• Eleven U.S. state pension funds face losses near 60% on Strategy holdings.
• Combined paper losses exceed $330 million as Bitcoin-linked stocks slide.
• The losses highlight risks of crypto exposure in conservative public portfolios.

Eleven U.S. state pension funds are reporting significant losses after a Bitcoin decline dragged down Strategy stock. The funds collectively lost more than $330 million, exposing the risks of crypto-heavy investment strategies in public pensions.

Pension Funds Hit Hard by Strategy Decline

Public pension funds in New York, Florida, Wisconsin, North Carolina, New Jersey, Utah, Kentucky, Maryland, and Michigan all hold stakes in Strategy (MSTR). Collectively, they own about 1.8 million shares, which were originally worth roughly $577 million. Today, those holdings are valued at approximately $240 million, representing a loss of $330 million.

Strategy shares have fallen 67% over the past six months, closely tracking Bitcoin’s price movement. The company, led by Executive Chairman Michael Saylor, adopted a strategy of converting cash reserves into Bitcoin, making its stock a leveraged proxy for the cryptocurrency. While the approach can boost returns in rising markets, it also amplifies losses during downturns.

Largest Losses Among State Funds

The New York State Common Retirement Fund has suffered about $53 million in paper losses, representing nearly 60% of its Strategy holdings. The fund manages around $280 billion in assets and serves over 1.1 million members, including teachers, police officers, and firefighters.

Florida’s State Board of Administration reports losses of $46 million, or 58% of its stake, across a $250 billion pension system. Wisconsin, North Carolina, New Jersey, Utah, Kentucky, and Maryland all reported losses between 57% and 60%. Michigan’s smaller position declined by about 8%, reflecting more limited exposure.

These losses illustrate the risks of concentrating investments in a single stock that is closely tied to a volatile asset like Bitcoin. The collective impact highlights how high-risk strategies can affect funds responsible for millions of retirees and active employees.

Interestingly, Bitcoin has seen a 7% decline over the past day, trading around $70,000. Bitcoin now trails its all-time high above $126,000 by 43%.

Risks of Crypto Exposure in Public Pensions

Many pension managers treated Strategy as a regulated gateway to cryptocurrency exposure without holding Bitcoin directly. The company’s model, buying Bitcoin with corporate debt and equity, offers leveraged exposure that can magnify both gains and losses.

The recent downturn has shown that concentrated investments in volatile assets can quickly erode pension capital. Experts warn that such strategies may complicate long-term funding, potentially forcing states to raise contributions or adjust assumptions about expected returns.

Public pension systems operate under a fiduciary duty to preserve capital for retirees. Large losses in a single, highly volatile stock raise questions about risk management, diversification, and timing of investment entries and exits.

The Strategy losses may prompt pension boards and state auditors to reassess investment strategies involving cryptocurrencies or crypto-linked stocks. Increased stress testing, diversification, and stricter limits on speculative assets are expected to become priorities.

Related: Why Bitcoin Is Capitulating: ETF Outflows, OI Crash, and Fear