South Korean Pension Fund Buys Nearly $34 Million in MicroStrategy
Date: 2024-08-16 Author: Gabriel Deangelo Categories: BUSINESS
South Korea’s National Pension Fund (NPS) bought nearly $34 million worth of MicroStrategy shares in the second quarter of this year. The purchase, made before the company announced a 10-for-1 stock split, has become a significant part of the fund’s investment strategy.
According to data released this week, NPS bought 24,500 shares at an average price of $1,377.48 per share. After the split, the fund’s total holdings increased to 245,000, valued at $32.32 million based on MicroStrategy’s last closing price of $131.93. The purchase of MicroStrategy shares can be seen as an indirect investment in Bitcoin, as the company is the largest corporate holder of the cryptocurrency.
It is worth noting that earlier this month, brokerage firm Benchmark increased its price target on MicroStrategy shares from $1,875 to $2,150, despite the company missing its Q2 revenue target. NPS’s support in the form of investments adds confidence in the future of the company under the leadership of Michael Saylor.
In addition, South Korea’s National Pension Service owns 229,807 shares of cryptocurrency exchange Coinbase, worth more than $45 million based on Coinbase’s last closing price of $197.12. NPS began acquiring Coinbase shares in 2023, when the fund bought 282,673 shares at an average price of $70.5.
As such, NPS’s investment strategy of buying leading tech stocks like MicroStrategy and Coinbase underscores their confidence in the long-term prospects of the cryptocurrency market and innovative technologies.
