Inside Michael Saylor's Bitcoin Strategy (4:18)
It has been a tumultuous cycle for Michael Saylor-led Strategy (Nasdaq: MSTR), formerly MicroStrategy. The company's stock has lost 65% of its value since Oct. 1 last year.
Recently, the leading Bitcoin (BTC) treasury company posted financial results for the fourth quarter of 2025 when it reported a net loss of $12.4 billion.
Worse, a market bank has lowered the firm's price target by 20%. But it hasn't stopped a major state retirement fund from increasing its stake in Strategy.
Related: Charles Schwab quietly boosts stake in MicroStrategy
Investment bank slashes Strategy stock price target
Founded as a traditional enterprise software company in 1989, MicroStrategy pivoted to building a digital asset treasury (DAT) focused on Bitcoin during the coronavirus pandemic in 2020.
The company rebranded to Strategy last year. It currently holds 717,131 BTC on its balance sheet, making it the world's largest Bitcoin treasury firm.
It's not that it has been a smooth ride so far and the ongoing crypto crash has only made it worse. While Bitcoin has declined 40% since Oct. 1, the MSTR stock has declined 65% since then.
The company has also been battling the declining market Net Asset Value (mNAV). The metric tracks how its market valuation compares with the value of its Bitcoin holdings, currently at 1.19.
The higher the mNAV, the higher the premium the stock offers to investors.
At press time, Bitcoin's current price is $65,844.08. That's about 12% lower than Strategy's average purchase price of $76,027 per coin. This means Strategy’s vast Bitcoin treasury is highly underwater.
Traditional players haven't let the decline in these crucial metrics go unnoticed. Last year, MSCI (formerly Morgan Stanley Capital International) proposed excluding public companies with more than 50% of their balance sheets dedicated to digital assets from its indices.
Though it has delayed the decision for now after strong pushback from Strategy, the MSCI's next move hangs like a dangling sword.
The company has also failed to make it to the much-coveted S&P 500 benchmark.
Recently, Mizuho Securities lowered its price target on Strategy by 20%. The bank has slashed the price target from $403 to $320 but maintained an Outperform rating, attributing the move to Bitcoin weakness.
But state retirement funds have been loading up on MSTR shares.
More News:
Michael Saylor predicts Bitcoin will beat S&P 500
MicroStrategy claims it can survive Bitcoin crash to $8,000
Saylor's MicroStrategy reports billions in quarterly loss
Virginia state retirement fund doubles down on MSTR stake
As per BitcoinTreasuries, the Virginia State Retirement Fund has bought 7,180 more MSTR shares. It now holds 31,880 MSTR shares worth $4.1 million.
The Mother of Presidents isn't the only state to disclose ownership of MSTR shares.
Other state retirement funds aren't far behind:
North Carolina Retirement Systems holds 168,688 MSTR shares.
Texas Teachers’ Retirement System holds 80,844 MSTR shares.
California State Teachers’ Retirement System (CalSTRS) holds 258,785 MSTR shares.
California Public Employees’ Retirement System (CalPERS) holds 470,632 MSTR shares.
Louisiana State Employees’ Retirement System (LASERS) holds 17,900 MSTR shares.
The MSTR stock was trading 2.6% lower at $121.93 at press time.
Related: Saylor’s MicroStrategy will eventually 'go bankrupt', predicts top gold bull
