California's $506 billion CalPERS pension fund shows division over direct Bitcoin investment, despite holding MicroStrategy shares.

CalPERS Board Split Over Bitcoin Investment

Candidates for the California Public Employees' Retirement System (CalPERS) board are divided on direct Bitcoin investment, despite the fund's indirect exposure through its MicroStrategy shares. The debate highlights differing views on cryptocurrency's role in long-term investment strategies.

Indirect Bitcoin Exposure via MicroStrategy

CalPERS holds 410,596 MicroStrategy shares, valued at $165.9 million as of Q2 filings, providing indirect exposure to Bitcoin. MicroStrategy, led by Michael Saylor, holds over 636,505 BTC worth over $70 billion, making it a vehicle for institutional crypto exposure without direct purchases.

Differing Candidate Views

During a recent forum, candidates for the CalPERS board expressed conflicting views on direct Bitcoin investment. Incumbent David Miller opposes direct Bitcoin investment, while challenger Dominick Bei questions the fund's indirect exposure through MicroStrategy while rejecting direct investment. Steve Mermell dismissed crypto outright, comparing it to past financial collapses like Enron.

"cryptocurrency should not have a seat on our board and never should," - David Miller

Broader Market Context

Other state pension funds are increasing their Bitcoin exposure. The State of Michigan Retirement System owns 300,000 ARKB shares, worth $10.737 million. The State of Wisconsin Investment Board disclosed $321 million in Bitcoin exposure via BlackRock's iShares Bitcoin Trust (IBIT) and Grayscale's Bitcoin Trust (GBTC).

Australian Pension Funds and Crypto

Australian retirement systems are also showing increased interest in cryptocurrencies, with platforms like Coinbase and OKX targeting self-managed superannuation funds. These funds have witnessed a sevenfold increase in cryptocurrency holdings since 2021, reaching a value of AUD 1.7 billion. Kadan Stadelmann of Komodo Platform argued that Bitcoin, as a store of value, is well-suited for long-term institutional portfolios and that CalPERS has a duty to hold Bitcoin directly rather than relying on intermediaries.