South Korea’s National Pension Fund Invests $33.7 Million in MicroStrategy Shares in Q2

Highlights:

• South Korea’s National Pension Service indirectly invests in Bitcoin via MicroStrategy.
• This follows an earlier investment in Coinbase stock.
• MicroStrategy, led by Michael Saylor, holds 226,500 Bitcoin worth $13.19 billion.

As per the latest 13F filing submitted to the United States Securities and Exchange Commission, South Korea’s National Pension Service (NPS), the world’s third-largest pension fund, acquired 24,500 shares of MicroStrategy, the largest corporate Bitcoin holder, in Q2 this year. The shares are valued at 46 billion won, or $33.7 million. This represents 0.04% of NPS’s direct investment portfolio in US stocks.

The Thinking Ahead Institute’s annual Global Pension Assets Study reveals that Japan’s Government Pension Investment Fund is the world’s largest pension fund, with nearly $1.5 trillion in assets as of 2023. The Government Pension Fund of Norway follows, with just over $1.3 trillion. South Korea’s public pension fund ranks third, with total assets exceeding $777 billion (1 trillion won) by the end of February.

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…

— Wu Blockchain (@WuBlockchain) August 16, 2024

South Korea’s NPS Acquired 282,673 Shares of Coinbase

This isn’t the first time NPS has sought exposure to publicly listed crypto stocks in the US. In the third quarter of 2023, the NPS acquired 282,673 shares of Coinbase (COIN) stock worth $19.9 million, marking its entry into direct investment in the crypto industry. 

The latest NPS filing revealed that by the end of June, the pension fund’s holdings in Coinbase totalled 229,807 shares, valued at approximately $51 million. This is down from 253,763 shares at the end of March. According to local media outlet Yonhap Infomax, the NPS’s stock portfolio also includes technology stocks like Microsoft, Nvidia, and Google.

South Korea is moving towards clearer digital asset regulations with the Virtual Asset User Protection Act. This new framework probably led the National Pension Service to consider digital assets a more credible investment, decreasing regulatory uncertainty.

MicroStrategy Leads in Bitcoin Holdings

MicroStrategy, once known for its business analytics software, has become the largest Bitcoin holder among public companies. CEO Michael Saylor, now closely linked with Bitcoin advocacy, led this transformation. Saylortracker data indicates that MicroStrategy currently holds 226,500 Bitcoin. 

The current value of these holdings is approximately $13.19 billion, with unrealized gains of $4.82 billion. MicroStrategy’s Bitcoin holdings are about 13 times greater than those of Marathon Digital, the world’s largest Bitcoin miner. The company remains committed to its long-term Bitcoin accumulation strategy.

The firm has consistently bought Bitcoin despite market conditions and price fluctuations. The latest purchase occurred on August 1, 2024, when it acquired 169 Bitcoin at approximately $67,400 each. Earlier, in June, the firm invested $786 million to acquire 11,931 Bitcoin. Saylor is outspoken about his Bitcoin stance on X and in interviews. In a recent Bloomberg interview, he revealed that he personally holds 17,732 Bitcoin and emphasized that he has not sold any of it.

The recent disclosure by NPS coincides with the SEC’s approval of the first single-stock leveraged long exchange-traded fund (ETF) for MicroStrategy. According to the press release, “MSTX aims to provide 175% long daily targeted exposure to MicroStrategy.”

Meanwhile, MicroStrategy (MSTR) experienced a 94.96% gain this year and rose above $150 for the first time in over 24 years, according to Google Finance.