South Korea’s National Pension Service Invests in MicroStrategy and Coinbase
South Korea’s National Pension Service (NPS), the world’s third-largest public pension fund, recently made a significant move into the cryptocurrency space by acquiring shares of MicroStrategy, a business intelligence firm known for its substantial Bitcoin holdings. The NPS also holds shares of Coinbase, the popular cryptocurrency exchange.
NPS Buys MicroStrategy Shares
According to public filings, the NPS purchased 24,500 shares of MicroStrategy in the second quarter of this year, before a 10-for-1 stock split. This investment was valued at nearly $34 million at the time of purchase. Following the split, the NPS now holds 245,000 shares of MicroStrategy, worth approximately $32.32 million.
- MicroStrategy holds the largest amount of Bitcoin among corporate entities, with 226,500 BTC valued at around $13.19 billion.
- This move by NPS can be considered an indirect investment in Bitcoin due to MicroStrategy’s substantial holdings.
NPS Holdings in Coinbase
In addition to its investment in MicroStrategy, the NPS also holds 229,807 shares of Coinbase, worth over $45 million. The fund began purchasing Coinbase shares in 2023 and continues to have significant holdings in the popular cryptocurrency exchange.
Institutional Interest in Cryptocurrency Market
These investments by the NPS reflect a broader trend of institutional investors gaining exposure to the cryptocurrency market through publicly traded companies like MicroStrategy and Coinbase. By investing in these firms, institutional funds can indirectly participate in the cryptocurrency market without directly holding digital assets.
- MicroStrategy’s stock has shown impressive performance in 2024, with a year-to-date gain of 92.5%.
- Other institutional investors and fund managers have shown interest in MicroStrategy, with some launching funds targeting exposure to the company’s stock.
MicroStrategy’s Bitcoin Strategy
MicroStrategy’s stock performance has been largely driven by its Bitcoin strategy, which began in August 2020. The company has continued to purchase significant amounts of Bitcoin, with the latest disclosure indicating an additional 12,222 BTC acquired for $805 million in the second quarter alone.
Growing Acceptance of Bitcoin
Major institutional investors like Norway’s central bank and the Swiss National Bank have also disclosed holdings in MicroStrategy, indicating a growing acceptance of Bitcoin as a legitimate asset class among traditional financial institutions.
Implications for South Korea
For South Korea, known for its tech-savvy population and progressive stance on digital technologies, the NPS’s investment in cryptocurrency assets could signal a shift in attitude towards digital assets at the institutional level. Despite strict regulations on cryptocurrency trading, this move by the national pension fund suggests a more nuanced approach to digital assets.
Securities and Exchange Commission
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