Harvard's Big Wager on Bitcoin Came Right Before the Bust — WSJ
By Heather GillersThings aren't looking good for Harvard's big bet on bitcoin.The nation's oldest and richest university supersize its wager on the cryptocurrency last quarter, ramping up its holdings in iShares Bitcoin Trust ETF to nearly half a billion dollars. Even after Tuesday's rebound, bitcoin has dropped more than 20% this quarter — dragged down in crypto rout hitting everyone from Wall Street to retail investors to holders of the U.S. president's meme coin.Harvard could have gotten out unscathed — or even with a small gain — if the school sold its holdings in early October, before prices dropped. The average price Harvard paid couldn't be learned but if the school still holds some or all of the 4.9 million shares it bought last quarter, the best-case scenario would be a 14% loss on those holdings.That assumes the shares were purchased at the beginning of July when bitcoin prices were at their low for the quarter. In that case, Harvard would have paid $294 million for shares that are now worth $255 million.Another 1.9 million shares Harvard bought in the second quarter before this year's big run up may have fared better.Any crypto losses would be a drop in the bucket for Harvard's massive $57 billion endowment, the biggest of any U.S. school. The bitcoin reported as of Sept. 30 represented less than 1% of the total holdings.Still, Harvard's ill-timed bet is a reminder of how bitcoin has worked its way into the mainstream with institutional investors, and how many were placing healthy bets on the cryptocurrency even after a staggering run-up this year. Before its retreat, bitcoin had gained 34% in 2025 to a record above $126,000.Annualized returns on Harvard's investments have lagged behind some peers over the past decade, with an 8.2% return ranking ninth out of 10 Ivies and other top schools in a comparison by Markov Processes International. The endowment has fared better under current chief N.P. "Narv" Narvekar, with an annualized 9.6% return during his eight-year tenure.For the year ending June 30, the school reported a respectable 11.9% gain but trailed Massachusetts Institute of Technology's 14.8% and Stanford University's 14.3%.Other schools might have been stung by the drop in crypto prices as well, but to a far lesser extent. Universities reporting crypto holdings in the third quarter also included Brown, with $14 million worth of the BlackRock bitcoin ETF, and Emory, with $52 million of Grayscale's Bitcoin Mini Trust ETF.Paper losses aren't necessarily a problem for long-term investors such as endowments and pension funds as long as they eventually rebound — and as long as they have other holdings they can tap for quick cash. And some institutional investors have been weathering the ups and downs of crypto for years. Public pensions were among those stung when digital currencies crashed in 2022. Bitcoin prices have more than quintupled since then.Still some investors deem crypto a poor match for long-term investors. "When you're gambling, you need to sell it, not hold it," said Jay Hatfield, chief executive of Infrastructure Capital Advisors.Write to Heather Gillers at [email protected]