Candidates for the California Public Employees’ Retirement System (CalPERS) Board of Administration expressed sharply different views on cryptocurrency during a public forum on Wednesday, Sept. 4. The session was part of the lead‑up to November’s board election, where six candidates are competing for seats.
Current exposure through Strategy shares
According to CalPERS’ Q2 2024 13F filing with the SEC, the nation’s largest state pension system holds 410,596 shares in Strategy, the company previously known as MicroStrategy. The holding, valued at $165.9 million, gives CalPERS indirect exposure to Bitcoin, since Strategy reports holding over 636,505 BTC (worth more than $70 billion at current prices) on its balance sheet.
Candidate exchanges highlight tensions
The crypto question was one of the most pointed at the forum, which was livestreamed and recorded for CalPERS members.
Incumbent David Miller attacked challenger Dominick Bei during his opening statement:
“Cryptocurrency should not have a seat on our board and never should.”
He referenced Bei’s nonprofit Proof of Workforce, which conducts Bitcoin education.
Bei pushed back by highlighting CalPERS’ existing ownership of Strategy shares:
“CalPERS owns shares in the largest bitcoin holding company in the world. How can candidates oppose direct Bitcoin investments while the fund already maintains indirect exposure?”
Miller replied that indirect ownership of a business is different than holding Bitcoin itself:
“Investing in a business that’s working with Bitcoin transactions is a very different game than direct investment in buying Bitcoin.”
The back‑and‑forth set the tone for the rest of the candidate forum.
Broad spectrum of candidate views
Steve Mermell rejected digital assets entirely: “Hell no!” he said when asked about crypto, comparing it to catastrophic cases like Enron and Orange County’s bankruptcy.
Troy Johnson acknowledged risks yet left the door open:
“I’m very wary of hyper‑sensitive investments like crypto, but I wouldn’t close the door entirely.”
Incumbent Jose Luis Pacheco separated Bitcoin from blockchain:
“Bitcoin is not a viable investment for the fund. But blockchain is an emerging technology we should study through partnerships and research.”
Industry perspectives on Bitcoin’s role
The debate reached beyond the candidates themselves. Kadan Stadelmann, CTO of Komodo Platform, told that Bitcoin has matured into a viable store of value:
“Bitcoin is certainly not too volatile for pensions, especially in light of inflation.”
He went further, arguing that CalPERS should consider direct exposure:
“The market has clearly chosen Bitcoin as a store of value. CalPERS has a duty to hold Bitcoin in self‑custody so the public is actually holding bitcoins, and not promises from middlemen.”
Other state pensions take positions
While CalPERS maintains only indirect exposure, other U.S. state pensions are stepping more directly into crypto:
- Michigan’s state pension tripled its Bitcoin ETF position to $11.4 million in Q2 filings.
- The Wisconsin Investment Board disclosed more than $387 million in Bitcoin ETF shares.
- Florida’s retirement system holds 240,026 shares of Strategy, valued at approximately $97 million.
What comes next
The CalPERS election in November will decide whether the board upholds its current indirect exposure to Bitcoin through equities or entertains direct digital asset investments in the future. For CalPERS’ 2 million members, the results may shape how the $506 billion fund navigates crypto as part of its long‑term investment strategy.
Alex Shepel
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