South Korea’s National Pension Service Invests $34M in MicroStrategy
South Korea’s National Pension Service (NPS), the world’s third-largest public pension fund, has acquired nearly $34 million worth of shares in MicroStrategy, according to an August 13 filing with the United States Securities and Exchange Commission (SEC). The NPS purchased 24,500 shares of MicroStrategy, valued at approximately $1,377.48 each. This investment underscores a growing institutional confidence in cryptocurrencies, particularly Bitcoin.
South Korea's National Pension Service (NPS) disclosed that it bought 245,000 shares of MicroStrategy in the second quarter of this year, worth about $33.75 million. Previously, NPS bought 282,700 shares of Coinbase in the third quarter of last year. NPS manages $729.77 billion…
The NPS’s move signals a strategic shift towards increased exposure to digital assets. As of February 2024, the NPS manages over 1 trillion won (approximately $777 billion) in total assets. In addition to its new stake in MicroStrategy, the pension fund also holds significant investments in other cryptocurrency-related entities. It maintains over $51 million in Coinbase and has investments in Roblox and Block valued at $31.5 million and $61.5 million, respectively.
MicroStrategy, a business intelligence firm turned major Bitcoin investor, has seen its stock price surge by 92.5% in 2024. The firm, led by Executive Chairman Michael Saylor, has accumulated a substantial Bitcoin reserve, making it the most significant corporate holder of the cryptocurrency. MicroStrategy’s aggressive Bitcoin acquisition strategy continues to attract institutional investors seeking indirect exposure to Bitcoin.
Bitcoin Proxy Investment Gains Popularity
Due to its extensive investments in the cryptocurrency, MicroStrategy’s stock has inadvertently become a proxy for Bitcoin. This trend has drawn interest from institutional investors who prefer indirect exposure to Bitcoin. In response to growing institutional interest, new financial products like Bitcoin ETFs have also gained traction. Notable examples include significant investments by the States of Wisconsin and Michigan in Bitcoin ETFs.
Despite its strategic moves, MicroStrategy has faced market challenges. In July, the company’s Bitcoin portfolio suffered from a market decline caused by the US government’s announcement of a $2 billion Bitcoin sell-off. Nevertheless, the firm remains committed to expanding its Bitcoin holdings.
Conclusion
The National Pension Service’s recent $34 million investment in MicroStrategy highlights a broader trend of increasing institutional interest in cryptocurrencies. By investing in MicroStrategy, the NPS gains indirect exposure to Bitcoin, reflecting a growing acceptance of digital assets within traditional financial strategies. As Bitcoin and related financial products continue gaining prominence, more institutions will likely follow suit.
