South Korea’s largest pension fund injects $33.75 million in MicroStrategy shares

South Korea’s National Pension Service has added MicroStrategy, the world’s largest institutional Bitcoin holder, to its portfolio.

The National Retirement Service, the world’s third-largest pension fund with approximately $800 billion in assets under management, announced in a filing with the U.S. Securities and Exchange Commission on August 13 that it purchased 24,500 shares of MicroStrategy (MSTR) for $33.75 million.

With the latest investment, MicroStrategy becomes the second major crypto-focused organization that NPS has invested in, following the purchase of 282,673 Coinbase (COIN) shares for $19.92 million last year. As of Q2 2024, the pension fund holds $51 million worth of COIN shares, up nearly 150% from last year.

NPS is hoping to replicate the success of its Coinbase investment with MicroStrategy, a business analytics firm that has shifted its focus to accumulating Bitcoin (BTC). Founded by Michael Saylor, the firm began its Bitcoin journey in 2020 and has since purchased 226,500 BTC worth $13.27 billion. MicroStrategy’s Bitcoin holdings are up 65% from the $8.35 billion it committed.

A similar trend has been seen among other major industry players who see MicroStrategy as a good investment. Two major central banks, the Norwegian and Swiss, recently purchased MSTR, and it is up 92.5% since the beginning of the year.

Pension funds embrace Bitcoin

Whether these investments reflect growing confidence in Bitcoin’s potential is debatable, but pension funds across jurisdictions are warming to the idea of ​​including Bitcoin in their assets.

The Japan Government Pension Investment Fund, currently the world’s largest pension fund, recently floated the idea of ​​exploring investments in the top cryptocurrency. Meanwhile, other funds like the Houston Firefighters’ Benevolent and Pension Fund have held Bitcoin in their portfolios since 2021.

Some institutions have opted for an indirect approach, with the emergence of spot Bitcoin exchange-traded funds offering a safer way for traditional funds to gain exposure to BTC — a trend that institutions like CBOE Digital have predicted.

The Michigan Retirement System has taken the latest step, announcing a $6.6 million investment in ARK 21Shares’ ARKB spot Bitcoin ETF, following the Wisconsin Investment Board’s $99 million Bitcoin investment in BlackRock’s iShares Bitcoin Trust last month.