- South Korea’s pension fund bought 24,500 shares of MicroStrategy (MSTR) worth nearly $34 million in the second quarter of 2024, before the company’s 10:1 stock split.
- The MicroStrategy purchase can be seen as an indirect investment in bitcoin (BTC), as MicroStrategy is the largest corporate holder of the cryptocurrency.
- The pension fund also holds 229,807 shares of Coinbase (COIN), worth over $45 million.
South Korea’s National Pension Service (NPS) recently purchased a significant stake in business intelligence company MicroStrategy. This investment can be seen as an indirect bet on Bitcoin, as MicroStrategy holds more of the cryptocurrency than any other publicly traded company.
Details of MicroStrategy Share Purchase
In the second quarter of 2024, NPS bought 24,500 shares of MicroStrategy at an average price of $1,377.48 per share. This was before MicroStrategy’s 10-for-1 stock split, meaning NPS now holds 245,000 shares valued at $32.32 million based on MicroStrategy’s latest stock price.
The purchase gives NPS exposure to Bitcoin since MicroStrategy owns around 130,000 BTC worth over $3 billion. MicroStrategy continues acquiring more bitcoin to make it the core holding on its balance sheet.
MicroStrategy Share Price Outlook
Despite MicroStrategy missing its revenue target last quarter, analysts remain bullish on the stock. Earlier this month, Wall Street firm Benchmark raised its price target on MicroStrategy to $2,150 from $1,875.
Benchmark believes MicroStrategy is pioneering how public companies can adopt bitcoin as an institutional-grade capital asset. Other analysts also see upside in MicroStrategy stock as its enterprise analytics software business improves.
NPS’ Other Crypto Investments
In addition to MicroStrategy, NPS owns 229,807 shares of crypto exchange Coinbase worth over $45 million. The pension fund began buying Coinbase shares in 2023 at an average price of $70.5 per share.
NPS seems to be taking a long-term, strategic view on crypto as an emerging asset class by investing in market leaders like MicroStrategy and Coinbase. The purchases indicate South Korea’s $700 billion pension fund believes crypto should play a role in its portfolio diversification.
Conclusion
NPS’ latest investment in MicroStrategy stock gives it indirect exposure to bitcoin’s potential upside. The purchase reflects growing institutional demand for crypto assets, even though bitcoin remains highly volatile. Pension funds and other institutional investors are starting to see crypto as an alternative to traditional asset classes.
