South Korea’s National Pension Service (NPS), one of the world’s largest pension funds, has made a significant investment in MicroStrategy (MSTR) during the second quarter of this year. This move highlights the growing interest in digital assets within institutional portfolios and signals a growing recognition of the potential of cryptocurrencies and blockchain technology.
The NPS acquired nearly $34 million worth of MicroStrategy shares, purchasing 24,500 shares at an average price of $1,377.48 per share. This investment was made just before MicroStrategy implemented a 10-for-1 stock split earlier this month, increasing the total number of shares held by NPS to 245,000. Based on the company’s latest closing price of $131.93, this investment is now valued at approximately $32.32 million.
MicroStrategy, led by executive chairman Michael Saylor, is renowned as the largest corporate holder of Bitcoin. NPS’s investment in the firm is being seen as an indirect endorsement of Bitcoin and a strategic move to gain exposure to the leading cryptocurrency. This investment comes on the heels of Wall Street broker Benchmark revising its price target for MicroStrategy to $2,150, up from $1,875, despite the company missing its revenue target for the second quarter. This optimistic outlook reflects the market’s confidence in MicroStrategy’s long-term strategy and its commitment to accumulating Bitcoin.
Beyond MicroStrategy, NPS also holds a substantial position in crypto exchange Coinbase (COIN). The pension fund owns 229,807 shares of Coinbase, currently valued at over $45 million, with the stock closing at $197.12 recently. NPS began building its position in Coinbase in 2023, initially purchasing 282,673 shares at an average price of $70.5 per share.
These strategic investments by NPS underscore the increasing importance of digital assets in institutional portfolios. As the digital asset landscape continues to evolve, these topics will be at the forefront of discussions at Benzinga’s upcoming Future of Digital Assets conference on Nov. 19.
