US Pension Funds Down Nearly 60% on Strategy as Bitcoin Trade Turns Painful

US public pension funds are facing mounting paper losses after betting on Strategy, the company that pioneered the corporate Bitcoin treasury model. As Bitcoin prices remain weak and Strategy’s shares continue to slide, those investments are now sharply underwater.

According to available disclosures, 11 US state pension schemes collectively hold nearly 1.8 million shares of Strategy, currently valued at around $240 million. When those positions were first reported, they were worth approximately $577 million.

The result is a $337 million paper loss — and for most funds, losses approaching 60%.

A Leveraged Bitcoin Bet Turns Painful

Strategy, led by its long-time Bitcoin advocate, became the blueprint for a new kind of corporate balance-sheet strategy: issuing debt and equity to buy Bitcoin, effectively creating leveraged exposure to the cryptocurrency.

During bull markets, that structure amplifies gains. But when prices fall, losses accelerate.

Over the past six months, Strategy’s shares have fallen about 67%, underperforming Bitcoin itself and reflecting both declining crypto prices and investor concerns around leverage.

Why Pension Funds Got Involved

In 2024 and 2025, institutional interest in digital assets broadened. Hundreds of companies adopted Bitcoin treasury strategies, while long-term investors — including public pension funds — began allocating small amounts of capital to the theme.

At the time, sentiment was still cautious, but some pension managers opted for indirect exposure via Strategy shares rather than holding Bitcoin outright.

Funds Facing the Largest Losses

Among the most affected pension systems:

• New York State Common Retirement Fund — down roughly $53 million, close to 60% of its position.
• Florida Retirement System — about $46 million in paper losses, around 58%.
• State of Wisconsin Investment Board — down approximately $26 million, near 60%.
• North Carolina’s public pension system — losses near $30 million, or 58%.

Other affected funds include pension systems in New Jersey, Utah, Kentucky, Maryland, and Michigan. In total, 10 of the 11 funds are down close to 60% on their Strategy investments.

Michigan’s retirement system stands out as the least affected, with a smaller position down by about 8%.

Bad Timing — or a Flawed Strategy?

The losses have reignited debate around the so-called Bitcoin treasury trade.

Supporters argue the strategy remains sound over a full market cycle and that timing — rather than structure — is the primary issue. Critics counter that leverage introduces risks that sit uneasily with pension funds’ mandate for stability and capital preservation.

For now, the outcome is clear: as Bitcoin languishes and Strategy trades at a steep discount, the amplified downside of the model is being felt by some of the most conservative investors in the US financial system.

Whether pension managers stay the course or quietly reduce exposure may offer the next signal on how institutional capital truly views crypto-linked balance sheets.