State of New Jersey Common Pension Fund D

History

2021: Investing more than $7 million in mining companies

At the end of July 2021, it became known that the New Jersey State Pension Fund with assets of $30 billion, one of the poorest pension funds, USA invested more than $7 million in two mining companies. The state fund said it owns 97,274 Riot Blockchain shares and 108,148 Marathon Digital Holdings shares. Both companies are among the largest mining firms. cryptocurrencies

According to the documents, at the end of June 2021, State of New Jersey Common Pension Fund D invested $3.66 million in Riot Blockchain ($37.67 per share) and $3.39 million in Marathon ($31.37 per share). At the same time, at the close of trading on July 29, Riot Blockchain and Marathon Digital shares fell to $31.90 and $27.48, respectively, which reflects a decrease of 15% and 12% in less than a month. Since mid-February, the value of Riot Blockchain shares has fallen 64%, and the value of Marathon shares has decreased 56.4% since April, when record high prices were recorded.

New Jersey Pension Fund begins investing in mining companies

It is known that this is the first investment of the New Jersey State Pension Fund in the cryptosector, but is unlikely to be the last. Other pension funds are also changing their attitude towards cryptocurrencies to a more loyal one: for example, at the end of 2020, the California public employees pension system with assets worth $441 billion bought 113,034 Riot Blockchain shares worth almost $2 million.

High-risk volatile stocks, such as those of mining companies, are atypical investments for long-term institutional investors, which include the state pension fund. But the decline in pension contributions and the rapidly changing economic situation prevent the New Jersey pension fund from continuing a conservative policy.^[1]

Notes