Aside from direct crypto investments, the National Pension Service has made substantial investments in cryptocurrency firms such as Coinbase.
With the maturation of the cryptocurrency industry, government institutions have begun to investigate opportunities with cryptocurrency firms.
According to the most recent announcement, National Pension Service, the largest investment group in South Korea, purchased Coinbase (NASDAQ: COIN) in the third quarter of 2023.
NPS Invests in Coinbase
The National Pension Service has initiated the integration of a virtual asset-related firm into its stock portfolio in the United States. Based on the stock holdings report submitted to the U.S. Securities and Exchange Commission (SEC) on the 16th, the National Pension Service obtained 282,673 Coinbase shares during the third quarter at 26.1 billion won, or $19,934,100.
In April 2021, Coinbase, the preeminent asset exchange in the United States, commenced trading on the Nasdaq. Despite adhering to its policy of refraining from direct investments in volatile virtual assets, the National Pension Service capitalized on a favorable situation involving Coinbase’s stock.
The National Pension Service generated a profit of approximately 40% in a single quarter due to the surge in Bitcoin’s value that ensued after the acquisition.
Notably, after being previously criticized for indirectly investing in a virtual asset-related business, the National Pension Service clarified that it had only invested in the exchange.
Additionally, according to a local news source, it emphasizes that virtual assets were not the pension fund’s primary investment objective. During the 2021 cryptocurrency bull market, a number of pension funds pursued direct exposure to cryptocurrencies.
COIN Stock Rally
The Coinbase (COIN) stock has continued its ascent since the cryptocurrency exchange disclosed robust third-quarter results two weeks ago. Tuesday, November 15th, the price of COIN stock increased by an additional 6.58%, approaching $100.
Amid the crypto winter of 2022, Coinbase stock experienced a severe decline in value, losing 90% of its initial public offering value in 2021. The price of COIN stock reached an all-time low of $33 earlier this year.
Subsequent to that, the Coinbase stock has experienced an extraordinary surge of 200% thus far in 2023. Despite this, its current price remains 66% below its all-time highs.
This year, a number of the most significant market participants have invested in Coinbase. However, Cathie Wood of Ark Invests has sold the COIN stock at each increase.
