Bitcoin price meltdown leaves these public pensions down 60% on Strategy bets

Core Insights - US pension funds that invested in Strategy are facing significant losses as the company's share prices decline, with a total paper loss of $337 million from an initial valuation of $577 million to $240 million [1][2] - The majority of these funds, 10 out of 11, have experienced a 60% drop in their investments in Strategy, which has seen its shares lose 67% of their value over the past six months [2] - The situation highlights the risks associated with the Bitcoin treasury trade, which has attracted institutional investors but has resulted in amplified losses during market downturns [2][3] Investment Performance - The 11 US state pension funds collectively hold nearly 1.8 million shares of Strategy, which are now valued at approximately $240 million [1] - The New York State Common Retirement Fund has reported a loss of about $53 million, representing a nearly 60% decline in its position [5] - The State Board of Administration of Florida Retirement System is facing an estimated $46 million loss, equating to around 58% of its holdings in Strategy [6] Market Context - In 2024 and 2025, many companies began to replicate Strategy's approach of leveraging debt and equity to invest in Bitcoin, leading to increased institutional interest [3] - Despite the initial enthusiasm, the prolonged decline in Bitcoin prices has resulted in significant challenges for these treasury strategies, raising questions about the timing and viability of such investments [3] - By 2024, only 23% of pension plans viewed cryptocurrencies positively, indicating a cautious approach among institutional investors [3]