South Korea National Pension Scheme Snaps 245,000 MicroStrategy (MSTR) Stocks
Highlights
- South Korea NPS is already sitting on 3x gains on its Coinbase investment last year in Q2 2023.
- The leveraged MicroStrategy ETF MSTX approved by the SEC offering 1.75x exposure to MSTR stock price.
- US State Investment boards continue to increase BTC exposure via spot Bitcoin ETFs.
On Thursday, South Korea’s National Pension Scheme submitted its 13F filings to the U.S. Securities and Exchange Commission (SEC) revealing the purchase of 245,000 MicroStrategy (MSTR) stocks during the second quarter. The MSTR stock price has already gained 92% since the beginning of 2024 with most of the gains coming in the first quarter.
South Korea National Pension Scheme Buys MicroStrategy MSTR Stocks
The total investment value of South Korea’s National Pension Scheme in acquiring MSTR stocks stands at 46 billion won or $33.7 million. This accounts for 0.04% of NPS’s direct investment portfolio in the US stocks.
This is not the first time South Korea NPS has sought exposure to public-listed crypto stocks in the US. During the third quarter of 2023, the NPS acquired a massive 282,673 shares of Coinbase (COIN) stock, while beginning its direct investment in the crypto industry. By then, the COIN share price was trading at $78 which has now surged by 3x to $222 by the end of the second quarter. The question is whether South Korean NPS eyeing a similar rally with the MSTR stock?
As we know, MicroStrategy is the largest single corporate holder of Bitcoins and currently holds more than 1% of the total Bitcoin supply in the market. In another development, the U.S. SEC approved a leveraged Microstrategy ETF MSTX issued by Defiance and will deliver 175% of MicroStrategy’s daily stock return. Interestingly, this business intelligence firm is turning out to be a proxy play for investors to bet on the Bitcoin price.
MSTX will provide a unique opportunity for investors willing to maximize their leverage exposure to the Bitcoin market. through a regulated ETF instrument.
State Players Seeking Exposure to Bitcoin
The launch of the spot Bitcoin ETFs in the market has provided a regulated way of gaining exposure to the largest crypto asset class. As a result, several US states gained exposure to this Bitcoin instrument during the second quarter of this year. A day before, the State of Wisconsin Investment Board (SWIB) announced major exposure to the BlackRock Bitcoin ETF. SWIB has been purchasing Bitcoin ETFs for two consecutive quarters since the ETF launch.
Last month, the State of Michigan Retirement System also disclosed a $6.6 million investment in ARK 21Shares Bitcoin ETF (ARKB). Similarly, Jersey City Mayor Steven Fulop has shared the intention to make bitcoin investments via ETFs.
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