(Bloomberg) — A new university in Texas is creating a Bitcoin holding in its endowment.
The University of Austin, which is admitting its first class of students this fall, has partnered with cryptocurrency platform Unchained to raise $5 million in Bitcoin for its long-term fund. Known as UATX, the school bills itself as being dedicated to free speech and intellectual risk-taking.
“Bitcoin provides a unique opportunity for advancing UATX’s commitment to cultivating future generations of leaders and innovators,” Thomas Hogan, an incoming associate professor at the university, said in a statement.
The university is planning to bring in 100 students this fall and has said it will provide free tuition for that first cohort. UATX’s backers include Larry Summers, a former US treasury secretary and Harvard University president, as well as historian Niall Ferguson and venture capitalist Joe Lonsdale. Journalist Bari Weiss, who is among the founders, revealed plans for the school in 2021.
Summers is a paid contributor to Bloomberg Television while Ferguson is a contributor to Bloomberg Opinion.
UATX President Pano Kanelos said last year that the upstart institution has seen a surge in interest from donors angry at the response of some elite universities to Hamas’s Oct. 7 attacks on Israel. The school had already raised almost $200 million as of late last year.
The University of Austin said it will hold the Bitcoin in its fund for a minimum of five years. Among the reasons the school chose to create the holding is that many of its supporters have asked if it accepts donations in the cryptocurrency, a spokesperson said by email.
Unchained, founded in 2016, has Bitcoin valued at more than $6 billion under management, according to the statement.
The token, which has risen more than 60% this year, was trading around $69,400 as of midday in New York.
–With assistance from Francesca Maglione.
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