California Public Employees’ Retirement System (CalPERS) has been caught on the wrong side of the recent sell-off in Strategy, with its first bet on the Bitcoin proxy stock sliding from more than $144m to about $80m in a matter of months.

According to a recent SEC filing, CalPERS acquired 448,157 Strategy (MSTR) shares in the third quarter, paying over $144m for the position. The stake, which gave the fund direct equity exposure to one of the most volatile Bitcoin plays in traditional markets, is now worth roughly $80m.

In the context of CalPERS, the hit is manageable. The fund manages over $550b in assets for more than 2m public sector workers and retirees, making it the largest public pension plan in the US, so the…