South Korea’s National Pension Service (NPS) Expands Crypto Exposure Through Indirect Investments

South Korea’s National Pension Service (NPS) is increasing its exposure to cryptocurrencies through indirect investments, as highlighted in a recent report. According to a Securities and Exchange Commission (SEC) filing, the NPS purchased approximately $34 million worth of MicroStrategy shares in the second quarter of 2023. MicroStrategy, known as the largest corporate holder of Bitcoin, currently holds over 226,500 bitcoins, which is more than 1% of the total Bitcoin supply. The NPS acquired 25,500 shares at an average price of $1,377.48 before MicroStrategy’s 1-for-10 stock split, making this investment an indirect way of gaining exposure to Bitcoin.

After the stock split, the NPS’s shareholding increased to 245,000 shares, though the value of this holding has since decreased by 3.4%, now worth around $32.59 million. This move is not the NPS’s first foray into crypto-related investments. The pension service also holds shares in the U.S. cryptocurrency exchange Coinbase, initially buying 282,673 shares at an average price of $70.50. Despite selling 12,866 shares, the remaining Coinbase shares have significantly appreciated, now valued at $47.18 million. This series of investments underscores the NPS’s growing interest in the cryptocurrency sector.

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