- Purchase of MicroStrategy Shares
- Previous Investments in Coinbase
- Role of MicroStrategy in Bitcoin Investments
South Korea's National Pension Service (NPS), the world's third-largest pension fund by assets, purchased $33.7 million worth of MicroStrategy shares in the second quarter of 2024.
Purchase of MicroStrategy Shares
NPS’s latest filing with the U.S. Securities and Exchange Commission revealed the purchase of 24,500 MicroStrategy shares as part of its broader strategy to increase indirect access to Bitcoin.
Previous Investments in Coinbase
This move follows NPS's previous investment in Coinbase, where the fund purchased 282,673 shares worth $19.9 million in Q3 2023. As of June 2024, NPS owned 229,807 Coinbase shares worth approximately $51 million. The report also noted a slight decrease in Coinbase holdings compared to the 253,763 shares owned at the end of March.
Role of MicroStrategy in Bitcoin Investments
Known as the largest institutional holder of Bitcoin with 226,500 BTC worth approximately $13.2 billion, MicroStrategy has become a popular choice for traditional investors looking to invest in Bitcoin. The company’s vast bitcoin reserves have made its stock a proxy for bitcoin in the traditional financial market. This week, the U.S. SEC approved the first leveraged ETF focused on MicroStrategy, further cementing the company’s role as a key player in bitcoin investment. MicroStrategy shares are up 92% year-to-date, while Coinbase shares are up 25% in the same period. NPS’s growing interest in these assets underscores a strategic shift toward integrating crypto-related investments into traditional portfolios.
These actions by NPS indicate a growing interest among traditional pension funds in cryptocurrency assets and their intent to diversify portfolios by investing in bitcoin-related companies.
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