South Korea's National Pension Service (NPS) has reportedly acquired approximately 26 billion won worth of Coinbase stocks, marking its debut investment in a virtual asset-related company within its U.S. stock portfolio.
As per the stock holdings report disclosed to the U.S. Securities and Exchange Commission (SEC) on the 16th, the NPS procured 282,673 shares of Coinbase stock during the third quarter, amounting to a valuation of $19,934,100, equivalent to 26.1 billion won.
Coinbase, known as the largest virtual asset exchange in the United States and listed on Nasdaq since April 2021, witnessed a surge in its stocks by 5.14% to $92.86 as Bitcoin rallied to its highest level in 18 months on the 9th.
Despite its previous declaration against direct investments in virtual assets due to their volatility, the NPS received scrutiny from the National Assembly in 2021 for investing in a fund associated with a virtual asset-related business. The NPS clarified its position by highlighting its investment solely in the exchange and reiterating that virtual assets were not a part of the pension's investment portfolio.
The NPS's strategic move seems to have paid off handsomely. Purchased at an average price of $70.5 per share in the third quarter, Coinbase's closing price at $98.15 signals an impressive 40% profit margin in just one quarter, attributed to Bitcoin's recent strength following the NPS's acquisition of Coinbase stocks.
This unexpected shift in investment strategy has sparked discussions among financial experts, signaling a potential diversification strategy for the National Pension Service amidst the dynamic landscape of virtual asset-related investments.