Quick Takeaways
- CalPERS holds $165.9M in shares of Strategy (formerly MicroStrategy), indirectly tied to Bitcoin.
- Board candidates are deeply divided over whether crypto belongs in the fund.
- Bitcoin ETF investments are being made by other state pension funds.
Candidates for CalPERS Are Conflicted About Crypto’s Place in the Fund
The future of crypto within CalPERS, the California Public Employees’ Retirement System, is quickly becoming one of the most talked-about issues in the fund’s upcoming board elections. And it’s easy to see why.
CalPERS isn’t just any pension fund with over $506 billion in assets, it’s the largest public pension system in the U.S. So when it makes moves (or stays put), others tend to watch closely.
Right now, the fund already has indirect exposure to Bitcoin through its sizable stake 410,596 shares worth $165.9 million in Strategy, the company formerly known as MicroStrategy.
Strategy is widely known for holding more than 636,000 Bitcoin, making it one of the biggest institutional holders of the digital asset. So, while CalPERS hasn’t bought Bitcoin outright, it’s already riding the crypto wave even if it doesn’t say so out loud.
Inside the CalPERS Crypto Clash: Heated Opinions and Big Questions
At a recent candidate forum, the topic of crypto sparked a lively (and at times, heated) debate. Incumbent David Millerdidn’t mince words. He slammed challenger Dominick Bei who runs a Bitcoin education nonprofit saying, “Cryptocurrency should not have a seat on our board and never should.”
But Bei wasn’t having it. He pushed back hard, pointing out the obvious contradiction. “Through Strategy, we already have a substantial amount of exposure to Bitcoin. Why do we act like we don’t?” he said.
Miller tried to draw a distinction, saying there’s a difference between investing in a company like Strategy and actually holding Bitcoin. But many see that as splitting hairs especially when Bitcoin makes up the core of Strategy’s value.
Some CalPERS Candidates Say ‘No Way’ Others Say ‘Not Yet’
The divide among the candidates couldn’t be more clear. Steve Mermell came out swinging, comparing crypto to financial disasters like Enron and the Orange County bankruptcy. His take? Crypto is “too opaque,” and has no business being part of a public pension system.
In contrast, Troy Johnson took a more cautious-but-curious approach. “I’m wary of highly sensitive investments like crypto,” he said, “but I wouldn’t close the door completely.”
This mix of perspectives shows there’s no consensus yet on how CalPERS should treat crypto and the upcoming election could tip the balance.
Blockchain? Yes. Bitcoin? Still a Maybe.
Interestingly, even some of the more crypto-cautious candidates see potential in blockchain, the technology behind Bitcoin.
Board member Jose Luis Pacheco was firm in his view that Bitcoin isn’t right for CalPERS. But he was also clear that blockchain holds promise. “This is a new and emerging technology,” he said.
He thinks CalPERS should explore it just not by buying coins. That approach embracing the tech, but not the tokens could be a way for the fund to innovate without diving into crypto’s deep end just yet.
Other State Pension Funds Are Already in the Game
While CalPERS debates, other state pension systems are already putting real dollars into crypto exposure:
- Wisconsin has more than $387 million worth of Bitcoin ETFs.
- Michigan tripled its holdings to $11.4 million in Q2
- The 240,026 Strategy shares owned by Florida’s pension fund are worth around $97 million.
These moves show that public institutions aren’t all sitting on the sidelines. In fact, some are racing ahead with or without CalPERS.
Where CalPERS Goes Next Could Set the Tone Nationwide
With the board election coming up in November, the decisions CalPERS makes now could shape how pension funds think about crypto in the years to come.
If the fund sticks to its current approach holding crypto-linked stocks but avoiding the assets themselves it may continue playing it safe.
But if more open-minded candidates win, direct investment in digital assets might finally be on the table. The big question: Is CalPERS ready to modernize or will it keep crypto at arm’s length?
