South Korea’s largest investment group, the National Pension Service, delved into the world of crypto assets, purchasing approximately $20 million worth of Coinbase shares in the third quarter. The acquisition marked a pivotal moment as it was the first instance of the National Pension Service including a virtual asset-related company in its U.S. stock investment portfolio.
NPS 40% Profit Surge in Q3 Crypto Gamble
According to news1 report, the National Pension Service invested in around 26 billion won worth of Coinbase stocks listed on Nasdaq, with an average purchase price per share of $70.5. The move proved astute, as the pension fund notched a remarkable 40% profit in just one quarter, reflecting the dynamic nature of the virtual asset market.
Details emerged from the stock holdings report submitted by the National Pension Service to the U.S. Securities and Exchange Commission (SEC) on the 16th, revealing the acquisition of 282,673 shares of Coinbase stock during the third quarter. The total valuation amounted to $19,934,100, translating to 26.1 billion won.
Coinbase, recognized as the largest virtual asset exchange in the United States and listed on Nasdaq in April 2021, experienced a notable surge in stock prices following a rally in Bitcoin. As Bitcoin achieved its highest level in 18 months on the 9th, Coinbase’s stock soared 5.14% from the previous trading day to $92.86.
The National Pension Service’s strategic move contrasts with its historical reluctance to directly invest in virtual assets due to their inherent volatility. In 2021, the pension fund faced criticism from the National Assembly after it was revealed that one of its funds had invested in a crypto asset-related business. At that time, the National Pension Service clarified that its investment was limited to the exchange, emphasizing that virtual assets were not a direct investment target for the pension.
Moreover, with Bitcoin displaying strength subsequent to the National Pension Service’s acquisition of Coinbase shares, the pension fund appears to be reaping substantial profits. The current closing price of Coinbase at $98.15 compared to the National Pension Service’s average purchase price of $70.5 signifies an impressive profit margin of approximately 40% in just one quarter.