North Carolina’s Crypto Investments
In recent years, the North Carolina Retirement Systems has started investing in cryptocurrency. In 2025, state lawmakers initiated efforts to pass legislation that would allow for greater direct investments in Bitcoin and other cryptocurrencies, despite dissent from state employees whose salaries support the pension plan.
Legislative Developments
The proposal to enhance the pension plan’s cryptocurrency investments passed the state House last year, with the state Senate expected to review it in their upcoming session in March. However, the value of the state’s cryptocurrency investments has plummeted recently, with reported paper losses in the tens of millions of dollars.
Current Financial Status
Despite these losses, which represent a negligible fraction of less than 1% of a $140 billion fund, the state continues to maintain its cryptocurrency investments. Advocates for state employees argue that these losses demonstrate the inappropriateness of investing in such volatile assets. The state treasurer has stated that it is too early to draw conclusions.
Value of Crypto Investments
As of September 30, the state’s investment in a crypto fund known as Strategy was valued at $51 million. Since then, North Carolina has continued to acquire shares, but recent valuations indicate that these holdings have decreased to approximately $18 million, marking a decline of about 65%.
Market Trends
Bitcoin saw nearly a 50% increase over the last five years but has drastically decreased by 75% since its peak on October 4. This volatility has raised concerns among state employee advocates regarding the suitability of cryptocurrencies for retirement plans.
Political Support and Advocacy
The addition of cryptocurrency investments to the state pension was a major focus for new N.C. House Speaker Destin Hall in 2025. Despite initial plans for a 10% investment cap, the proposal was revised to 5% following significant opposition, including from state employees and retirees.
Long-Term Investment Perspective
Despite the current struggles in the cryptocurrency market, State Treasurer Brad Briner remains optimistic, emphasizing the long-term perspective required in pension fund management. He argues that all investments, including stocks, experience fluctuations but are managed with the goal of security and growth for employees and retirees.
