Major Funds See Opportunity in Strategy Inc’s Sharp Decline

Strategy US5949724083

While the share price of Strategy Inc, the world's largest corporate Bitcoin holder formerly known as MicroStrategy, has faced a steep correction from its yearly peak, a notable shift is occurring among major institutional players. Recent regulatory filings reveal that significant investors are using the downturn to establish or increase their stakes, potentially signaling a vote of confidence in the company's long-term approach.

Contrary to what might be expected during a period of extreme price swings, several institutional investors have demonstrated conviction. A filing with the U.S. Securities and Exchange Commission (SEC) dated December 8, 2025, shows that the California Public Employees Retirement System (CalPERS) boosted its holdings in Strategy Inc by 15% during the second quarter. This move brings the pension fund's total position to over 410,000 shares, valued at approximately $166 million.

This accumulation comes as the equity trades around €157.05, a level roughly 60% below its 52-week high. The same leverage to Bitcoin's price that fueled massive gains during the rally has recently amplified the downward move. Market observers interpret the decision by a traditionally conservative entity like CalPERS to buy at this level as an attempt to stabilize the stock. Other institutions, including the National Bank of Canada and Vanguard, are also reported to have maintained or expanded their positions.

A Strategic Cash Cushion

In a direct operational response to concerns about a potential "crypto winter," the company's management has taken defensive measures. On December 1, Strategy Inc established a cash reserve of $1.44 billion. This liquidity is specifically designated to cover dividend payments and interest obligations for the next two years.

CEO Phong Le emphasized that this action is intended to quell market speculation—often referred to as "FUD"—that the firm might be forced to liquidate portions of its Bitcoin treasury to meet operational expenses. Selling crypto assets, he stated, remains an absolute last resort. This marks a subtle strategic pivot: moving away from the highly aggressive accumulation of the past—with only 130 Bitcoin purchased so far in December—toward a focus on safeguarding its existing treasury of 650,000 Bitcoin.

Wall Street Adjusts Expectations

Despite these defensive maneuvers and growing institutional interest, Wall Street's valuation of the company remains contentious. Analysts at Cantor Fitzgerald recently drew attention by slashing their price target for Strategy Inc from $560 to $229, a reduction of more than half. While the firm maintained its "Overweight" rating on the shares, it cited diminished expectations for the company's future capital-raising activities.

The concurrent establishment of a substantial cash reserve and the entry of large investors like CalPERS suggest that Strategy Inc is working to solidify the foundation for a long-term holding strategy. Whether these steps will be sufficient to reverse the prevailing downtrend—which has seen the stock fall over 46% since the start of the year—continues to depend heavily on the performance of the underlying Bitcoin market.