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3w ago

CalPERS’ $144 Million MicroStrategy Bet Drops to About $80 Million as Index Risk Mounts

The pension fund’s paper loss underscores how MicroStrategy’s Bitcoin-heavy model exposes index investors to crypto swings.

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CalPERS faces heavy losses
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Overview

  • An SEC filing shows CalPERS bought 448,157 MSTR shares in Q3 for $144 million, and the position is now valued at about $80 million after a roughly 45% quarterly drop.
  • The loss is small relative to CalPERS’ more than $550 billion in assets, making the exposure manageable within the broader portfolio.
  • MSCI is weighing whether to exclude crypto-heavy companies, with a decision due January 15, and JPMorgan estimates MSCI removal alone could trigger up to $2.8 billion in passive outflows.
  • Passive funds currently hold nearly $9 billion of MSTR exposure, raising the prospect of forced selling if major benchmarks remove the stock.
  • CEO Michael Saylor rejects fund-like labeling and points to a $500 million software business, as MicroStrategy remains the largest corporate Bitcoin holder at 649,870 BTC and has paused a six-week buying streak.