Would you be mad if MSU invested in Bitcoin with its endowment?

[Beretta.sixpack]

Just got me to thinking.....I read an internet rumor that Harvard was doing so.....and there are a few others too....there are plenty of major companies jumping on board daily......

TBH, I don't think our administration is smart enough to do it....and it wouldn't surprise me if every SEC school did it and we would still refuse (like beer sales at games)

 

[John Deaux VII]

Another Bitcoin thread. Just what we need.....

 

[Beretta.sixpack]

Another Bitcoin thread. Just what we need.....

 

[anon1758050382]

I'll just copy and paste my argument from the endowment thread in favor:

I made the argument that Mississippi State should allocate 1-10% of the endowment to bitcoin when the price was under $10k/bitcoin. The price is now over $100k/bitcoin, but from a risk-adjusted perspective, it makes even more sense now. I'll make the argument again:

1. Diversification
2. Long-Term Growth Potential
3. Technological Innovation
4. Attracting Donors
5. Financial Stewardship

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Diversification​

Traditional endowment portfolios often rely heavily on stocks, bonds, and real estate. Bitcoin, as a decentralized digital asset, operates independently of traditional financial markets. This unique characteristic can provide a hedge against market volatility and economic downturns, potentially reducing overall portfolio risk. For instance, Brown University's endowment recently invested $4.9 million in bitcoin ETFs, representing a small but strategic diversification.

Long-Term Growth Potential​

Over the past decade, bitcoin has demonstrated substantial growth, outperforming many traditional asset classes. A modest allocation to bitcoin could yield significant returns over time, enhancing the endowment's ability to fund scholarships, faculty positions, and research initiatives. Stanford University's Blyth Fund, managed by students, allocated 7% of its endowment to bitcoin investments, reflecting confidence in its long-term value.

Technological Innovation​

As a leading research institution, MSU is committed to fostering innovation and embracing emerging technologies. Investing in bitcoin aligns with this mission, positioning the university at the forefront of the digital asset revolution. The University of Austin has partnered with Unchained Capital to introduce a pioneering bitcoin endowment, demonstrating a commitment to forward-thinking financial strategies.

Attracting Donors​

A strategic investment in bitcoin could attract a new generation of donors interested in supporting innovative financial initiatives. This move could enhance MSU's appeal to alumni and philanthropists who are passionate about technological advancement and financial innovation.

Financial Stewardship​

By prudently allocating a portion of the endowment to bitcoin, MSU can demonstrate proactive financial stewardship, adapting to evolving market conditions and technological advancements. This approach reflects a commitment to maximizing the endowment's potential to support the university's mission and objectives.
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Allocating 1–10% of MSU's endowment to bitcoin offers a strategic opportunity to enhance portfolio diversification, capitalize on long-term growth, align with technological innovation, attract future-oriented donors, and demonstrate financial stewardship. Given the university's recent success in surpassing $260 million raised in fiscal year 2025 and achieving an endowment exceeding $1 billion, this initiative could further strengthen MSU's financial position and support its mission to provide transformative education and research opportunities.

For future reference:

• bitcoin price - $117,000
• 1% of $1 billion - $10 million (85.47 BTC)
• 10% of $1 billion - $100 million (854.70 BTC)

 

[anon1758050382]

TBH, I don't think our administration is smart enough to do it....and it wouldn't surprise me if every SEC school did it and we would still refuse (like beer sales at games)

The question highlights a larger point about Mississippi State's unique position relative to its peers in the SEC. Let’s face it, State isn’t going to outspend Texas, Georgia, or Alabama when it comes to athletics, research funding, or facilities. Our resources are limited compared to many of the other SEC schools, and playing catch-up is never going to win the game in the long run.

This is why thinking outside the box becomes not just a good idea but a necessary one. While larger schools like Texas or Georgia can afford to play it safe and focus on traditional investments, State doesn't have that luxury. We need to be willing to take bold, calculated risks because being conservative and sticking with the status quo is likely just going to keep us further behind.

Being the first SEC school to make a move into bitcoin could be the exact kind of bold, forward-thinking step that sets State apart and gives us a competitive advantage. When you’re already at a resource disadvantage, taking a risk on something like bitcoin could pay off big time. Bitcoin’s potential to disrupt traditional financial systems means it could provide impressive returns that help State fund more scholarships, enhance research, or improve facilities.

For a school like Texas with massive resources, bitcoin might just be a small addition to their portfolio, but for us, it could be the X-factor that allows State to compete in ways we’ve never been able to before. It's like betting on an innovative future, rather than playing a game we’ve already lost.

Ultimately, I think the question isn’t whether every institution will have a bitcoin strategy; it’s when. As more universities, governments, and corporations adopt bitcoin, the innovators will lead the way. State could be one of those pioneers, setting an example for other schools to follow, or we could be left behind, playing catch-up while others reap the rewards of being ahead of the curve.

So, rather than considering it a risk, maybe we should consider it a strategic move that could set Mississippi State apart, create new opportunities, and build a future that isn’t reliant on trying to match the financial firepower of our larger competitors.

 

[ronpolk]

Even if they wanted to, are they allowed to? Most of these funds… like pension funds (I would assume endowment funds too) have pretty strict standards on what they can invest in. I don’t think something really speculative like bitcoin would be allowed.

 

[Perd Hapley]

Why would anyone be mad? It’s not my money. They can do whatever the hell they want with it.

 

[Seinfeld]

Spend millions on Bitcoin or a bunch of clueless 17 year olds

 

[anon1758050382]

Even if they wanted to, are they allowed to? Most of these funds… like pension funds (I would assume endowment funds too) have pretty strict standards on what they can invest in. I don’t think something really speculative like bitcoin would be allowed.

I’m not aware of a federal or state law that prevents the endowment from holding bitcoin. Maybe someone can educate us if there is one.

The decision would have to be made by the Foundation’s investment committee operating under the oversight of the Foundation’s board of directors.

An SEC school will do it. The question is who will be first? Of the 16 schools, it makes the most sense for the one on the bottom rung of the ladder to take the leap. Not very far to fall.

 

[ronpolk]

I’m not aware of a federal or state law that prevents the endowment from holding bitcoin. Maybe someone can educate us if there is one.

The decision would have to be made by the Foundation’s investment committee operating under the oversight of the Foundation’s board of directors.

An SEC school will do it. The question is who will be first? Of the 16 schools, it makes the most sense for the one on the bottom rung of the ladder to take the leap. Not very far to fall.

No, I’m not saying there are federal or state laws. Most of these type of entities have internal investment policies that dictate what type of investments can be made, usually highly rated companies or funds (by rated I mean by like s&p or moodys). Now I guess those policies can be changed but there are definitely investments that can be made that are more aggressive than bonds or mutual funds but don’t have as much risk as bitcoin. I just don’t see a university endowment investing in bitcoin until there is more regulation around something like that.

 

[GloryDawg]

I wish they would use AI to see what game plan is best for the next opponent in football. Program all the names for both State and the opponent with all the statistics and characteristic of every player and let it come up with the best game plan.

 

[ckDOG]

As long is it fits in with how speculative investments play a role in their long term investment strategy, why not?

 

[Howiefeltersnstch]

Personally I'm thinking invest in disposable and set up stands outside all the WNBA venues. Million dollar idea

 

[horshack.sixpack]

Just got me to thinking.....I read an internet rumor that Harvard was doing so.....and there are a few others too....there are plenty of major companies jumping on board daily......

TBH, I don't think our administration is smart enough to do it....and it wouldn't surprise me if every SEC school did it and we would still refuse (like beer sales at games)

Probably not as mad as if I found out how many investment advisors were being overpaid to manage it…

 

[HRMSU]

I wish they would use AI to see what game plan is best for the next opponent in football. Program all the names for both State and the opponent with all the statistics and characteristic of every player and let it come up with the best game plan.

Everybody has a game plan until they get punched in the face***

 

[GloryDawg]

Everybody has a game plan until they get punched in the face***

AI might tell them to keep from getting punched in the face.

 

[TheBannerM]

Just got me to thinking.....I read an internet rumor that Harvard was doing so.....and there are a few others too....there are plenty of major companies jumping on board daily......

TBH, I don't think our administration is smart enough to do it....and it wouldn't surprise me if every SEC school did it and we would still refuse (like beer sales at games)

FYI, Auburn and UGa were the last SEC schools to allow beer sales at FB games. State was the 8th SEC school to join the party in 2020, three full seasons before Auburn.

 

[bully12]

Dr. Ebersole in 1970 had it right: "Houses and lots . . . . . . . houses of ill repute and lots of whiskey!!"

 

[anon1758050382]

No, I’m not saying there are federal or state laws. Most of these type of entities have internal investment policies that dictate what type of investments can be made, usually highly rated companies or funds (by rated I mean by like s&p or moodys). Now I guess those policies can be changed but there are definitely investments that can be made that are more aggressive than bonds or mutual funds but don’t have as much risk as bitcoin. I just don’t see a university endowment investing in bitcoin until there is more regulation around something like that.

What do you mean when you say, "as much risk as bitcoin"? For example, a 1% allocation to bitcoin risks a total portfolio loss of 1%, and that's accounting for the risk of bitcoin going to zero. That risk is almost non-existent. Maybe bitcoin going to zero was a real concern in 2013. Not so much anymore. And, again, even in that scenario, you only lose as much as you allocate. Based on 16 years of historical data, the real risk of bitcoin is a temporary correction of 50% or more. That risk is easily managed with position size and time horizon.

To put it another way, if our risk managers can't manage the risk of one of the best-performing assets of the last two decades, we need new risk managers and capital allocators.

And what do you mean when you say, "until there is more regulation around something like that"? What regulation, specifically, are you hoping to see?

 

[anon1758050382]

Probably not as mad as if I found out how many investment advisors were being overpaid to manage it…

especially when they can't outperform the guy who just accumulates bitcoin and touches grass

 

[jxndawg]

I say we take it to Tunica and put it all on red.