MSTR’s sharp correlation with Bitcoin volatility highlights ongoing risks for institutional investors in digital assets.
California Public Employees’ Retirement System (CalPERS), the largest public pension fund in the US by assets, has seen a drawdown in its first exposure to Strategy (MSTR).
According to a recent SEC disclosure, the fund acquired 448,157 MSTR shares for over $144 million in the third quarter. The position is now valued at $80 million.
However, the investment represents a tiny portion of CalPERS’ total portfolio. The fund manages over $550 billion worth of assets as of the latest data.
Strategy stock closed Wednesday at about $175 and is down 45% so far this quarter, per Yahoo Finance. The slump reflects MSTR’s correlation to Bitcoin’s recent price swings and risk-off conditions.
Moreover, negative sentiment tied to JPMorgan’s warning about potential outflows if the stock is excluded from major benchmarks like MSCI also weighed on its recent decline, though many in the crypto community argue that the bank was simply spreading FUD because it had opened a short position.
JPMorgan disclosed a mix of equity and derivatives exposure to Strategy, holding common shares alongside sizable call and put option positions in Q3.
