The National Pension Service of South Korea Invests in Coinbase
The National Pension Service (NPS), a public pension fund in South Korea, has made a significant investment in the global cryptocurrency exchange Coinbase. In the third quarter of 2023, the NPS purchased over 280,000 shares of Coinbase, which have since increased in value by 39%.
According to a stock holdings report filed with the United States Securities and Exchange Commission (SEC) on Nov. 15, the NPS acquired 282,673 shares of Coinbase in Q3 of 2023. This investment is currently worth $27.7 million based on Coinbase’s last recorded close of $98.15 on Nov. 15.
Despite purchasing the shares for approximately $19.9 million, the NPS has realized a profit of roughly $7 million from this investment. This marks the first time that the NPS has bought stock in Coinbase, as it previously had a policy against investing directly in cryptocurrencies due to their volatility.
Coinbase Stock Performance and Legal Challenges
Coinbase stock has experienced significant growth in 2023, reaching as high as $110 per share in July and increasing by close to 170% year-to-date. However, it is still down by 74% from its all-time highs above $300 in September 2021.
This growth comes despite legal challenges faced by Coinbase, including a lawsuit from the U.S. SEC alleging violations of securities laws by offering unregistered securities on its platform. In response, Coinbase has disputed the SEC’s authority in crypto and argued that its definition of security is too broad.
Hot Take: The NPS Dives into Cryptocurrency Investments
The decision by South Korea’s National Pension Service to invest in Coinbase represents a significant shift in its investment strategy, marking its first direct involvement with a major cryptocurrency exchange. This move reflects a growing acceptance of cryptocurrency investments among institutional investors and could signal further diversification within the pension fund’s portfolio.
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