South Korea’s National Pension Fund (NPS) has made a significant investment by purchasing MicroStrategy shares valued at $34 million during the second quarter of 2024. This strategic decision is seen as an indirect method of investing in Bitcoin, given MicroStrategy’s substantial Bitcoin holdings. Additionally, NPS holds over $45 million worth of Coinbase shares, underscoring its growing interest in cryptocurrency assets.
MicroStrategy Investment: An Indirect Bitcoin Bet?
The NPS’s acquisition of 24,500 MicroStrategy shares, managed by Michael Saylor, occurred just before the company executed a 10:1 stock split. The average purchase price for these shares was reported at $1,377.48. Following the split, MicroStrategy’s total shares increased to 245,000, with a combined value of $32.32 million based on the last closing price of $131.93.
This move is largely interpreted as an indirect investment in Bitcoin due to MicroStrategy’s status as one of the largest institutional Bitcoin investors. NPS’s strategy signals a growing interest in cryptocurrency, as investing in MicroStrategy shares indirectly exposes the fund to Bitcoin’s performance.
Benchmark’s Insights and Coinbase Shares
Benchmark, a leading Wall Street brokerage, has been closely monitoring MicroStrategy’s performance. Despite missing second-quarter revenue expectations, the firm elevated its price target for MicroStrategy’s stock from $1,875 to $2,150. This adjustment reflects confidence in the company’s future prospects.
Moreover, NPS has been actively investing in Coinbase since 2023. The fund currently holds 229,807 shares of Coinbase, originally acquired at an average price of $70.5 per share. As of now, these shares are valued at over $45 million, based on Coinbase’s recent closing price of $197.12.
Key Investment Takeaways
• NPS’s investment in MicroStrategy serves as an indirect Bitcoin investment.
• The 10:1 stock split of MicroStrategy has increased its total share count.
• Benchmark has raised its price target for MicroStrategy, indicating positive future expectations.
• NPS’s significant holdings in Coinbase highlight its broader strategy in the cryptocurrency sector.
Conclusion
NPS’s substantial investments in MicroStrategy and Coinbase underline its strategic foray into the world of cryptocurrency. These moves reflect a calculated approach to gaining exposure to Bitcoin and other digital assets indirectly. The fund’s actions suggest a growing institutional confidence in the potential of the cryptocurrency market.
