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The California Public Employees’ Retirement System (CalPERS), the largest public pension fund in the United States, is at the center of a growing debate over cryptocurrency investments. During a recent board candidate forum, six contenders vying for two seats on CalPERS’ Board of Administration expressed sharply divided views on whether digital assets like Bitcoin belong in the fund’s $506 billion portfolio.
The discussion was sparked by CalPERS’ indirect exposure to Bitcoin through its substantial holdings in Strategy, the company formerly known as MicroStrategy. Strategy is widely recognized as the largest publicly traded Bitcoin holding firm, with over 636,000 BTC on its balance sheet. CalPERS currently owns more than 410,000 shares of Strategy, valued at approximately $165.9 million—making it one of the largest indirect Bitcoin stakeholders among U.S. pension funds.
Incumbent board member David Miller took a firm stance against cryptocurrency, declaring that “crypto should not have a seat on our board and never should.” He criticized challenger Dominick Bei for his affiliation with a Bitcoin education nonprofit, arguing that speculative assets like Bitcoin pose unacceptable risks for a pension system tasked with safeguarding retirement funds.
Bei responded by highlighting the contradiction in CalPERS’ current investment strategy. “We already own shares in the largest Bitcoin holding company in the world,” he said. “If we’re benefiting from Bitcoin indirectly, we owe it to our members to have an honest conversation about what that means.”
Other candidates offered a range of perspectives. Steve Mermell rejected crypto outright, citing past financial disasters like the Enron scandal and Orange County’s bankruptcy as cautionary tales. “It all sounds so good until it’s not,” he said. “Crypto is opaque, speculative, and has no place in a pension system.”
Troy Johnson took a more moderate view, acknowledging the risks but leaving the door open to future exploration. “I’m very wary of hyper-sensitive investments like crypto,” he said, “but I wouldn’t close the door entirely.”
Incumbent Jose Luis Pacheco drew a distinction between Bitcoin and the underlying technology. “Bitcoin is not a viable long-term investment for CalPERS,” he stated, “but blockchain is an emerging technology with promise. We should study it through partnerships and research.”
The debate reflects a broader tension within institutional finance: how to balance innovation with fiduciary responsibility. While some see crypto as a volatile gamble, others argue that ignoring its growth could mean missing out on transformative opportunities.
Beyond crypto, the forum also touched on CalPERS’ private equity strategy, transparency concerns, and climate-related divestment policies. But it was the crypto question that drew the most passionate responses—underscoring how digital assets have become a defining issue in the future of public finance.
As CalPERS members prepare to vote, the outcome could shape not only the fund’s investment strategy but also its stance on emerging technologies that are reshaping global markets.