South Korea’s Public Pension Fund Invests $33.75M in MicroStrategy Shares

• South Korea’s National Pension Service (NPS), one of the world’s largest pension funds, is investing $33.75M in MicroStrategy shares in a bid to diversify into digital asset companies to broaden its investment scope and seek higher returns.

South Korea’s Public Pension Fund invested in MicroStrategy, acquiring 245,000 shares in the firm, valued at $33.75m, during the second quarter this year. 

A recent 13F filing showed that the investment represents 0.04% within the fund’s total US stock holdings.

During the third quarter last year, the National Pension Service (NPS) bought 282,673 Coinbase shares, marking the first time the fund invested in a digital assets company within its US stock holdings. This quarter, it sold 23,956 shares, capitalizing on the increased value.

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

MicroStrategy, originally known for its business analytics software, has become a key player in Bitcoin investments. The firm’s CEO Michael Saylor, now closely associated with Bitcoin advocacy, spearheaded this shift.

Under his leadership, MicroStrategy has become the largest corporate holder of Bitcoin. By mid-2024, the company owned nearly 1% of all Bitcoin in existence.

South Korea’s NPS Diversifies with Digital Asset Investments, Eyeing Higher Yields

The NPS, which oversees one of the world’s largest pension funds, is deliberately expanding its investment scope. It is choosing to invest in digital asset companies like Coinbase to diversify its risk across various investment types. The fund hopes to achieve greater yields compared to traditional investment options.

The NPS’ decision to invest in Coinbase at a time when its shares saw a substantial profit of about 40% in one quarter may have confirmed the effectiveness of its approach. Such results could spur more investments into companies linked to digital assets, viewing them as avenues for high growth.

South Korea Advances Digital Asset Regulations

South Korea is progressing toward clearer regulations for digital assets. This is highlighted by the enactment of the Virtual Asset User Protection Act. 

This legal framework likely influenced the National Pension Service to view digital assets as a more credible investment category, reducing regulatory uncertainty.

The NPS’ investment can be seen as a forward-looking move, anticipating the growing importance of digital assets in the future.