South Korea’s National Pension Service (NPS), the world’s third-largest pension fund with nearly $800 billion in assets, has substantially invested in MicroStrategy. According to an August 13 filing with the U.S. Securities and Exchange Commission, the NPS acquired 24,500 shares of MicroStrategy (MSTR) for $33.75 million.
This latest move marks NPS’s second significant investment in a cryptocurrency-related company. Last year, the fund purchased 282,673 shares of Coinbase (COIN) for $19.92 million. As of the second quarter of 2024, the NPS’s investment in Coinbase has grown to $51 million, reflecting an impressive 150% increase over the past year.
NPS aims to replicate its success with Coinbase by investing in MicroStrategy, which has become well-known for its focus on Bitcoin. Founded by Michael Saylor, MicroStrategy began its Bitcoin journey in 2020 and has since acquired 226,500 BTC, now valued at $13.27 billion. The company’s Bitcoin holdings have risen by 65% from the $8.35 billion originally invested.
NPS is not alone in seeing value in microstrategy. Other major financial players, including the central banks of Norway and Switzerland, have also purchased shares in the company. MicroStrategy’s stock has surged by 92.5% since the start of the year, highlighting the growing confidence in its strategy.
The increasing interest in Bitcoin among pension funds is becoming more noticeable. While it’s still debated whether this indicates growing confidence in Bitcoin’s long-term potential, more pension funds are considering adding Bitcoin to their portfolios.
Japan’s Government Pension Investment Fund, the largest pension fund in the world, has recently shown interest in exploring Bitcoin investments. Meanwhile, the Houston Firefighters’ Relief and Retirement Fund has held Bitcoin since 2021.
Some institutions are taking a more cautious approach by investing in spot Bitcoin exchange-traded funds (ETFs), which offer a safer way for traditional funds to gain exposure to Bitcoin. For example, the State of Michigan Retirement System recently disclosed a $6.6 million investment in ARK 21Shares’ spot Bitcoin ETF, following the State of Wisconsin Investment Board’s $99 million investment in BlackRock’s iShares Bitcoin Trust.
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