NY Pension Fund's Strategy: Buying More Bitcoin-Kissed Stocks Despite Market Drop

Bitcoin prices have taken a downturn this week, causing closely related stock prices to drop as well. Notably, shares of Strategy (MSTR) tumbled significantly during regular trading hours. Despite this decline, a significant investment action took place as one of the largest public pension funds in the U.S. increased its stake in the company.

Key Takeaways

The New York State Common Retirement Fund has increased its investments in Strategy (MSTR) despite a 7% drop in stock prices, indicating institutional confidence.
Strategy’s shares fell to $163.55 as Bitcoin experienced significant selling pressure, trading around $86,214.
The fund owns approximately 0.10% of Strategy, which is valued at about $113.8 million, as part of its diversified portfolio.
Strategy remains the largest corporate holder of Bitcoin, having recently purchased over 10,000 BTC, although its stock has seen substantial volatility.
Other pension funds are also increasing their stakes in Bitcoin-linked stocks, reflecting a cautious but growing institutional interest in cryptocurrency exposure.

The New York State Common Retirement Fund, which oversees approximately $284 billion in assets, reportedly raised its holdings in Strategy, which is considered a stock proxy for Bitcoin investments.

Strategy's Stock Declines as Bitcoin Sell-Off Persists

The decline of Strategy shares was evident as they dipped to $163.55 at 13:56 EST on December 15, reflecting a 7.29% drop for the day. The trading volume was substantial, with approximately $2.32 billion exchanged across nearly 14 million shares. The stock fluctuated between a high of $176.50 and a low of $160.54, resulting in a market capitalization of $50.7 billion.

Trading Performance

Currently, Strategy has 287.35 million outstanding shares, with 267.03 million in circulation, trading at a basic market net asset value of 0.88. This decline in stock price corresponds with renewed selling pressure in the broader crypto market. Bitcoin was trading around $86,214, reflecting a 3.5% decrease in the last 24 hours, 4.4% over the past week, and over 10% in the past month.

Bitcoin Price

This drop follows a significant correction from Bitcoin’s recent high above $126,000, impacting companies with direct exposure to Bitcoin on their balance sheets.

Continued Investments Despite Market Volatility

The New York State Pension Fund has been gradually increasing its investment in Strategy. Earlier in 2025, during the second quarter, the fund raised its stake and later disclosed another increase in its holdings in a November filing for the third quarter. At that time, its investment in Strategy accounted for approximately 0.10%, valued at about $113.8 million.

The New York State fund ranks among the largest public retirement systems in the U.S., with a diversified portfolio featuring public equities, fixed income, private equity, real assets, and alternative investments. Public stocks make up just over 40% of its total assets.

Diverse Holdings

While the allocation in Strategy remains modest within the fund’s diverse portfolio, its sustained investment amidst market turbulence has garnered attention due to the volatility associated with Bitcoin-related assets.

Strategy’s Bitcoin Holdings Surge Amid Stock Decline

Strategy has become a key player in Bitcoin exposure. Over the years, the company has been converting its operating cash flow, equity issuance proceeds, and debt financing into Bitcoin purchases. This strategy has made its stock price fluctuate in relation to Bitcoin's price movements.

Since reaching a peak above $450 in July, Strategy's shares have plummeted nearly 62%, as reported by Yahoo Finance. Over the last six months, the stock has decreased by more than 55%, dropping from around $369 in mid-June to the mid-$160 range.

Stock Graph

Despite these challenges, Strategy remains committed to expanding its Bitcoin holdings. Last week, it announced the acquisition of 10,645 BTC for $980.3 million, at an average price of $92,098 per coin. This purchase increased its total Bitcoin holdings to 671,268 BTC, consolidating its status as the largest corporate holder of Bitcoin worldwide.

To address investor concerns regarding liquidity and cash commitments, Strategy established a $1.44 billion U.S. dollar reserve. This fund is designed to cover dividend payments and interest expenses without necessitating the sale of Bitcoin during turbulent market conditions. Management indicated that this reserve is sufficient to support at least 12 months of dividend obligations, with future plans to extend this coverage to two years.

Other public pension systems, including those in New Jersey, have also reported increases in their MSTR holdings in recent months. This highlights a broader trend of selective institutional interest in Bitcoin-linked equities rather than direct investments in cryptocurrencies.