1. Details of NPS’s Investments in Coinbase and MicroStrategy
2. Fund Rejects the Claim: Investment Index-Based, Not Crypto-Targeted
3. Management Principles and Planned Restrictions

The National Pension Service (NPS) of South Korea clarified that it invests in crypto-related companies such as Coinbase and MicroStrategy instead of directly purchasing Bitcoin or other cryptocurrencies. This statement was made in response to public speculation regarding the fund’s indirect investments in cryptocurrencies.

Details of NPS’s Investments in Coinbase and MicroStrategy

NPS emphasized that the investments in companies like Coinbase and MicroStrategy are made within the framework of external management decisions and the Morgan Stanley Capital International (MSCI) index they follow. For instance, as of March 2023, the National Pension Fund owned 28 million shares of Coinbase, with a market value of 1.009 trillion South Korean won. During the same period, it acquired 200 shares of MicroStrategy, amounting to a total value of 4 billion South Korean won.

Fund Rejects the Claim: Investment Index-Based, Not Crypto-Targeted

While the market interprets NPS’s purchases of Coinbase and MicroStrategy shares as indirect investments in Bitcoin, the fund rejected this claim. NPS reiterated that the stock acquisitions are not aimed at investing in cryptocurrencies and are solely based on index alignment.

Management Principles and Planned Restrictions

Additionally, the fund noted that it would consider limiting investments in crypto-related companies, depending on decisions by the Fund Management Committee. If such a restriction is imposed, the fund will remove these companies from its indices and cease future investments in them. Finally, the fund emphasized its commitment to profitability and reliability principles in its management policies. South Korean lawmaker Baek Jong-heon highlighted the need for careful assessment of risks associated with cryptocurrencies in the fund’s management, joining the discussions concerning stock purchases and crypto connections.

The National Pension Service of South Korea emphasized that its investments in crypto-related companies are aimed at index alignment and external management, rather than direct involvement in the cryptocurrency market.