North Carolina Pension Crypto Investments Plunge Millions: Why Bulls Aren’t Panicking

The have taken a big hit lately. The state’s retirement fund, which handles money for thousands of public workers, has seen paper losses of tens of millions in just a few months. Bitcoin and other cryptos crashed hard, wiping out over half the value of key holdings. Yet, supporters of these bets stay calm. They point to long-term gains and market cycles. This story dives into the losses, the debate, and why some leaders remain confident.

Background: How NC Got Into Crypto

North Carolina’s Retirement Systems started adding crypto-linked assets a few years ago. This includes funds tied to Bitcoin and shares in crypto companies. The total pension pot is huge – over $142 billion. Crypto makes up a tiny slice, less than 1%.

Under past and current State Treasurers – both Republicans – the plan bought into a fund called Strategy. It’s heavy on Bitcoin. They also hold stock in Coinbase, the big crypto exchange, and Robinhood, which trades crypto and stocks.

These moves fit a broader strategy. Pension bosses mix safe bets like bonds and cash with riskier ones like stocks and now crypto. The goal? Beat the 6.5% yearly growth target over decades, not days.

The Recent Plunge: Numbers Don’t Lie

As of late September, the Strategy fund holding was worth $51 million. By last Friday, it dropped to $18 million – a 65% loss. The state kept buying shares even as prices fell.

Coinbase shares? Down from $32 million to about $15 million. Robinhood holdings fell 41% to $38 million. All linked to Bitcoin’s tumble. BTC hit an all-time high on October 4, then crashed 75%. Over five years, though, Bitcoin is up nearly 50%.

• Strategy Fund: $51M → $18M (-65%)
• Coinbase: $32M → $15M (-53%)
• Robinhood: Down 41% to $38M

These are unrealized losses. The state holds the assets, so no cash is gone yet. In the giant $142 billion fund, it’s a small blip.

State Treasurer’s Take: Long Game Wins

Brad Briner, the State Treasurer, has deep experience from New York managing big money. He oversees the pension. Briner isn’t sweating the dip.

“Even on tough days, our portfolio is balanced and well above our 6.5% annual growth target since I took office,” Briner said.

He compares it to stocks. Last Friday, a small drop in Amazon stock cost the fund more in one day than all crypto losses combined. The state won’t sell Amazon – or crypto. Pensions think in decades.

Big holdings like $1 billion each in NVIDIA, Microsoft, Apple, Google, and Amazon dwarf crypto. That’s smart diversification.

Legislative Push: More Crypto Allowed?

In 2025, lawmakers wanted to let the pension invest directly in Bitcoin and others. House Speaker Destin Hall made it a top goal. Crypto backers donated big to politicians.

Original plan: Up to 10% in crypto. Pushback from workers and retirees cut it to 5%. The House passed it last year. The Senate might vote when session starts in March.

Not just Republicans. Some Democrats said yes. Older GOP members worried but followed leadership.

Supporters’ Confidence: Cycles, Not Crashes

State Rep. Mike Schietzelt, a young Republican, backs it strong. He sees crypto’s history: bear markets then bull runs. “Dips followed by rises,” he says. Memes even joke about it.

“Treasurer Briner has diamond hands. He’s a sophisticated investor who gets these markets,” Schietzelt added.

Over 8-10 years, crypto swings are normal. Bitcoin’s long-term uptrend fuels hope for the next boom.

Opponents’ Fears: Roller Coaster for Retirees

Not everyone agrees. Ardis Watkins leads the State Employees Association of North Carolina. Her group fought the plan from day one.

“Crypto is a roller coaster. High highs, low lows. Not right for retirement,” Watkins said.

She trusts Briner’s skills but hates the risk. Pensions pay monthly bills. They can’t gamble like a casino. Even if Bitcoin rebounds, volatility scares her. “It would be a disaster,” she warns.

Why Pensions Eye Crypto Anyway

Pension funds chase returns. Stocks, bonds yield steady but low. Crypto offers huge upside. States like Wisconsin and Utah added Bitcoin. North Carolina follows suit.

Risks? High. But tiny allocations limit pain. History shows stocks crash too – 2008, dot-com. Yet they recover. Crypto’s youth means more unknowns, but fans bet on adoption.

Bitcoin as ‘digital gold’? ETFs make it easier. Governments buy it. Halvings boost scarcity. Supporters see $100K+ BTC soon.

Comparing Risks: Crypto vs. Stocks

Point: All investments swing. Crypto’s just louder now.

What’s Next for NC Pension Crypto?

Senate votes loom. If passed, up to 5% direct crypto. Briner decides buys. Market recovery? Bitcoin cycles suggest yes. Or deeper bear? Possible.

Workers watch close. Their paychecks fund it. Balance risk and reward key.

For investors, lesson: Volatility normal. Hold through dips if long-term believer. NC’s small bet tests if pensions can handle crypto’s wild ride.

Final Thoughts

The grabs headlines. Millions down on paper. But in a $142B fund, it’s minor. Supporters eye cycles, history, Briner’s skill. Critics fear retiree pain. Debate rages as law advances. Crypto’s future? Bright for bulls, bumpy for bears. Stay tuned – March session could change everything.

What do you think? Pensions in crypto: smart or reckless? Share below.

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