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Bitcoin News Update: Arizona's Approach to Bitcoin Through MSTR—Smart Equity Move or Risky Pension Gamble?

Bitcoin News Update: Arizona's Approach to Bitcoin Through MSTR—Smart Equity Move or Risky Pension Gamble?

Bitget-RWA2025/11/21 02:30
By:Bitget-RWA

- Arizona's pension fund holds $13.5M in Bitcoin via 76,238 MSTR shares, down from $24M as the stock fell 60% since November 2024. - MSTR faces potential $2.8B outflows if excluded from MSCI indices, exacerbating liquidity risks amid its heavy reliance on index-linked passive flows. - The firm recently bought 8,178 BTC ($835.6M) to reach 649,870 tokens ($48.37B cost value), defended by CEO Saylor as a long-term strategy. - Institutional investors increasingly use equity-linked crypto exposure through firms

The Arizona State Retirement System, responsible for overseeing pension and benefit plans for public sector workers, has

in through its holding of 76,238 shares in (MSTR). As of Thursday, the value of this investment dropped to $13.5 million, with shares . This action highlights to gain digital asset exposure via regulated stocks instead of holding cryptocurrencies directly.

Strategy’s shares have encountered notable challenges amid widespread market turbulence. The stock, which broke through key support points in August and September, has

. This week, analysts at JPMorgan Chase that Strategy might be dropped from major indices such as the MSCI USA and Nasdaq 100, a move that could prompt $2.8 billion in withdrawals if MSCI finalizes the exclusion. Such an event would likely intensify liquidity challenges for the company, which depends significantly on passive fund inflows tied to indices.

Even with the share price drop, Strategy has

. In a filing dated November 17, the firm reported buying 8,178 BTC for $835.6 million, . This acquisition, financed through preferred stock offerings, increased its total Bitcoin reserves to 649,870 coins, . CEO Michael Saylor has , stressing its “solid support base” and a long-term belief in Bitcoin’s value growth.

Bitcoin News Update: Arizona's Approach to Bitcoin Through MSTR—Smart Equity Move or Risky Pension Gamble? image 0

The latest acquisitions illustrate the delicate balance between safeguarding capital and seeking growth in a challenging market. Strategy’s net asset market value (mNAV) has

, showing that its enterprise value now trades only slightly above its Bitcoin assets. Some critics say the company’s dependence on passive Bitcoin exposure and high-yield preferred shares has . At the same time, competitors such as Fidelity and Bitwise are testing new approaches, including staking-based ETFs, to provide yield and set themselves apart.

The Arizona pension fund’s move highlights the measured optimism of institutional investors as they navigate the fragmented crypto sector. While direct Bitcoin ownership remains controversial,

offers a regulated alternative in an uncertain regulatory climate. However, the steep drop in MSTR’s share price—and the broader industry’s difficulties— of passive Bitcoin investment strategies in such a volatile environment.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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