Bitcoin prices have continued to slide this week, contributing to a downturn in closely correlated equities and leading to a sharp drop in the shares of Strategy (MSTR). On December 15, shares of Strategy closed down over 7%, reaching $163.55 during regular trading hours. The trading volume was significant, totaling approximately $2.32 billion with around 14 million shares exchanged. This decline disrupted what had been a relatively stable valuation, with the stock fluctuating between an intraday high of $176.50 and a low of $160.54, resulting in a market capitalization of $50.7 billion.
The latest downturn in Strategy shares comes in tandem with renewed pressure in the broader crypto market, where Bitcoin was trading at approximately $86,214—down 3.5% in the last 24 hours and more than 10% over the past month. This decline follows a sharp correction from Bitcoin’s recent peak, which surpassed $126,000, placing additional burdens on companies like Strategy that hold significant Bitcoin assets on their balance sheets.
Despite the falling stock price, the New York State Common Retirement Fund, which manages roughly $284 billion in assets, has quietly opted to increase its exposure to Strategy. The fund, known as one of the largest public retirement systems in the U.S., made a notable move by raising its stake in Strategy during the second quarter of 2025. A subsequent filing in November revealed that the fund had increased its holdings to approximately 0.10% of Strategy’s equity, amounting to about $113.8 million.
While the New York State fund’s investment represents only a modest allocation within a diversified portfolio—primarily focused on public equities, fixed income, private equity, real assets, and alternative investments—it highlights an intriguing trend of institutional investors selectively engaging with Bitcoin-linked equities rather than direct cryptocurrency ownership. The fund’s appreciable exposure has garnered attention, particularly given the heightened volatility associated with such assets.
Strategy itself has been actively accumulating Bitcoin as part of its operational strategy. The company has effectively transformed cash flows, equity issuance proceeds, and debt financing into Bitcoin acquisitions, causing its share prices to act as a leveraged reflection of Bitcoin’s market movements. Since reaching a peak of over $450 in July, Strategy’s shares have plummeted by nearly 62%, with the stock price declining from around $369 in mid-June to approximately $160.
Interestingly, amidst the stock decline, Strategy remains committed to increasing its Bitcoin holdings. A recent disclosure indicated the purchase of 10,645 BTC for $980.3 million, with an average price of $92,098 per coin. This acquisition has pushed the company’s total Bitcoin holdings past 671,000 BTC, solidifying its status as the largest corporate holder of Bitcoin in the world. Management has indicated that the recent purchases are part of a strategy to reassure investors about liquidity and cash obligations. To bolster investor confidence, the firm has established a $1.44 billion U.S. dollar reserve aimed at covering dividend payments and interest expenses for at least a year.
Other public pension funds, including those from New Jersey, have also disclosed increasing their holdings in Strategy in recent months. This reflects a broader trend of institutional investors cautiously investing in Bitcoin-related equities amid fluctuating market conditions and investor concerns regarding cryptocurrency volatility.
