State pension funds in the United States have suffered significant financial losses due to the sharp decline in the stock of Strategy, which is directly linked to the drop in the value of Bitcoin. The value of the stock holdings owned by eleven state funds decreased from approximately $577 million to $240 million, resulting in a total paper loss of $337 million.
This is reported by Business • Media
Significant Losses for Pension Systems in Various States
According to available data, ten out of the eleven funds lost about 60% of the value of their investments in Strategy. Over the past six months, the stock price of this company has decreased by approximately 67%, coinciding with the deterioration of Bitcoin’s market dynamics and a general decline in interest in risky assets.
Among the hardest hit are the pension system of New York State, which lost about $53 million, the Florida fund — $46 million, and the Wisconsin Investment Board — $26 million. Notable declines have also been recorded in the funds of North Carolina, New Jersey, Utah, Kentucky, and Maryland.
Causes of Losses and Risks of Further Investments
The decline in investment value is explained by the strategy of the company Strategy, which actively purchased cryptocurrency through the issuance of debt securities and additional shares. This approach increases profitability during market growth but simultaneously leads to accelerated capitalization decline when prices fall.
“On one hand, investing in Strategy allowed participation in the growth of the crypto asset through the public market; on the other hand, the high dependence on the asset’s price makes such positions vulnerable during corrections.”
During the 2024–2025 period, interest in the Strategy model from public companies and institutional investors, including pension funds, has increased. Many began to view the company’s shares as an alternative way to participate in Bitcoin’s dynamics without directly investing in the cryptocurrency itself.
Despite the growing interest, pension funds’ attitudes toward crypto assets remained extremely cautious. According to Fidelity Digital Assets’ assessment, as early as 2022, only about 23% of pension plans viewed cryptocurrency investments positively.
Analysts at investment bank Compass Point believe that Bitcoin could reach a bottom at around $65,000, indicating further potential risks for investors choosing strategies related to cryptocurrencies.