South Korea's National Pension Service (NPS) has recently acquired $34 million worth of shares in MicroStrategy, a renowned business intelligence firm that has amassed billions in Bitcoin.
Details of the Purchase
As per a recent SEC filing, the NPS purchased 24,500 shares of MicroStrategy during the second quarter at an average price of $1,377. Post MicroStrategy's 10-for-1 stock split this month, the total shares bought amount to approximately 245,000.
About South Korea's National Pension Service
Being South Korea's public pension fund, the NPS stands as the largest institutional investor in the country, boasting assets exceeding $777 billion. The $34 million investment in MicroStrategy by NPS can be interpreted as an indirect endorsement of Bitcoin.
MicroStrategy's Bitcoin Holdings
MicroStrategy currently holds the largest amount of Bitcoin among all publicly traded companies, with a staggering 226,500 BTC valued at approximately $13.2 billion. The firm utilized debt to procure a significant portion of its Bitcoin holdings, positioning the stock as a leveraged play on Bitcoin.
Pension and Sovereign Wealth Funds' Involvement
The NPS is now part of a growing cohort of pension and sovereign wealth funds that are gaining exposure to Bitcoin through investments in MicroStrategy. Notable entities such as Norway's central bank and the Swiss National Bank have also revealed their holdings in MicroStrategy.
Market Response and Implications
MicroStrategy's stock value has nearly doubled this year, with an increasing number of institutional investors expressing confidence in the company's Bitcoin-centric approach. Defiance ETFs recently introduced a leveraged ETF aimed at capturing 175% of MicroStrategy's daily movements.
The widespread adoption of MicroStrategy shares by major pension funds globally serves as a validation of Bitcoin's emergence as a preferred treasury asset for public corporations.
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