NC Pension Plan Just Lost $30M in Crypto! Is This the Start of a Financial Disaster? Find Out!

The North Carolina Retirement Systems has made headlines recently after beginning to invest pension fund money in cryptocurrency in late 2025, a move that was enabled by a law pushed through by legislative leaders despite opposition from state employees who contribute to the plan. As of this week, the state has seen more than half the value of its cryptocurrency investments wiped out, losing approximately $33 million since September 30. In addition, investments in crypto-related companies have also suffered significant losses.

While this paper loss represents less than 1% of a fund valued at over $140 billion, the situation has raised concerns among employee advocates about the wisdom of investing in such volatile assets. The state treasurer, Brad Briner, who oversees the pension plan, cautions that it’s too early to make definitive statements about the investments’ future.

As of September 30, the state’s investment in a crypto fund named **Strategy** had a valuation of $51 million. Since then, the state has continued to acquire shares in this fund, according to **Fintel**, an investment research company. However, as of last Friday, the value of the state’s holdings in Strategy had plummeted to just $18 million, marking a decline of about 65%. This drop comes in the context of a broader downturn in the cryptocurrency market, particularly for Bitcoin, which has seen a staggering 75% decline from its all-time high on October 4.

Briner, who has an extensive background in managing investments for wealthy individuals and institutions in New York, maintains a level-headed approach to the losses. He emphasizes that pension fund managers are focused on long-term performance rather than short-term fluctuations. “Even on tough days, our portfolio is balanced and is well above our 6.5% annual growth target since I assumed office as State Treasurer,” he stated in a written response to **WRAL**.

In the broader context of the $142 billion pension plan, cryptocurrency investments account for only a tiny fraction. The plan's major holdings include over $1 billion each in industry giants like **NVIDIA**, **Microsoft**, **Apple**, **Google**, and **Amazon**. Despite the volatility experienced in the cryptocurrency sector, Briner argues that the state’s exposure to traditional stocks is much greater, making the crypto investments a minor part of the overall portfolio.

The state also holds shares in **Coinbase**, a leading cryptocurrency exchange, which has seen its value cut in half, dropping from $32 million on September 30 to an estimated $15 million. Additionally, the pension system is invested in **Robinhood Markets**, an electronic trading platform that offers cryptocurrency trading, and its stock is down approximately 41% since September, valued at around $38 million.

Advocates for state employees, such as **Ardis Watkins**, the leader of the State Employees Association of North Carolina, argue that the recent losses illustrate why the state should not invest in high-risk assets like cryptocurrencies. “Crypto is a roller coaster, period,” Watkins remarked in a recent interview. “It doesn’t seem like a great item or a suitable thing for something like a retirement plan.”

The Push for Crypto Investments

In 2025, one of the key priorities for new North Carolina House Speaker **Destin Hall** was to enable cryptocurrency investments within the state pension plan. This initiative drew considerable funding from crypto billionaires and companies who contributed to the election campaigns of various political figures. Initially, Hall proposed allowing as much as 10% of the pension’s wealth to be allocated to cryptocurrencies. However, after facing significant pushback from organizations like SEANC, as well as state employees and even fellow GOP lawmakers, the proposal was amended to a 5% cap.

Briner, a Republican who was first elected in 2024, has yet to reach that cap, choosing instead to take a cautious approach in the volatile market. The divide over cryptocurrency investment in the legislature is seen more as a generational issue than a strictly partisan one, with younger lawmakers more inclined to support crypto investments than their older counterparts who express skepticism.

State Representative **Mike Schietzelt**, a vocal supporter of the investment, insists that he and his fellow proponents understand the inherent risks involved. “This is part of the cryptocurrency cycles we’ve seen over the last 8 to 10 years,” he stated. “You can see these unrealized losses and panic, or you can understand that this moves in cycles.” Schietzelt expressed confidence in Briner’s ability to navigate these turbulent waters, stating, “Treasurer Briner has diamond hands.”

While Watkins agrees that Briner is knowledgeable about investing, she maintains that the state should focus on more stable investments to secure employees' pensions for the long term. “Doing the chasing like you would in a casino — ‘Oh, I hit it big. Now I lost big, but no big deal, because I hit it big’ — that's not going to work for retirement. It's not. It would be a disaster,” she cautioned.

Briner remains committed to maintaining a balanced portfolio, noting that investments in the stock market also experience volatility. He stated, “The first priority of our investment team is to keep our employee and retiree money secure and growing, reminding us that investments in the stock market always have good days and bad days.”

As North Carolina navigates these turbulent financial waters, the future of its cryptocurrency investments remains uncertain, sparking ongoing debate about the appropriateness of such assets in public pension plans.