As a seasoned crypto investor with over a decade of experience under my belt, I find it exhilarating to witness the growing acceptance and integration of Bitcoin into mainstream financial institutions like pension funds. The National Pension Service’s recent investment in MicroStrategy, a prominent Bitcoin holder, is a testament to the burgeoning confidence in digital assets.
The National Pension Service of South Korea has opted to incorporate MicroStrategy, a global leader in holding Bitcoin by corporations, into their investment portfolio.
The National Pension Service, one of the world’s largest pension funds with approximately $800 billion in control, recently purchased 24,500 shares of MicroStrategy (MSTR) for a total of $33.75 million. This transaction was disclosed in a filing submitted to the U.S. Securities and Exchange Commission on August 13th.
Through recent investments, MicroStrategy has become the second significant cryptocurrency-oriented entity that NPS has backed, following last year’s purchase of 282,673 Coinbase (COIN) shares for $19.92 million. As of Q2 2024, this pension fund still owns approximately $51 million in COIN shares, marking a nearly 150% increase over the previous year.
It’s plausible that MicroStrategy, a data analysis company established by Michael Saylor and known for its Bitcoin investment, aims to mirror the profits of its Coinbase investment. The firm began its Bitcoin venture in 2020 and has since amassed approximately 226,500 BTC, currently valued at around $13.27 billion. Since its initial commitment of $8.35 billion, MicroStrategy’s Bitcoin holdings have increased by 65%.
It’s been noticed that other significant market participants share a similar perspective on MicroStrategy being a worthwhile investment. Notably, both the Norwegian and Swiss central banks have recently acquired MSTR shares. Since the beginning of this year, these purchases have resulted in a 92.5% increase in its value.
Pension funds embrace Bitcoin
There’s ongoing discussion about whether these investments indicate increasing faith in Bitcoin’s future, yet a trend has emerged: Pension funds from different regions are gradually considering adding Bitcoin to their investment portfolios.
The world’s largest pension fund, Japan’s Government Pension Investment Fund, has proposed considering investments in leading cryptocurrencies such as Bitcoin. Simultaneously, other funds like the Houston Firefighters’ Retirement Fund have been holding Bitcoin in their portfolios since 2021.
Certain organizations have chosen a roundabout strategy due to the emergence of spot Bitcoin exchange-traded funds (ETFs). These ETFs provide a more secure avenue for conventional investment funds to participate in Bitcoin trading. This is a development that major institutions such as CBOE Digital had been preparing for.
The Michigan State Retirement System recently revealed a $6.6 million investment in ARK 21Shares’ ARKB Bitcoin ETF, mirroring the State of Wisconsin Investment Board’s $99 million Bitcoin purchase in BlackRock’s iShares Bitcoin Trust, made last month.
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2024-08-16 14:25