Harvard’s big wager on bitcoin came right before the bust

Subscribe to enjoy similar stories. Things 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.