South Korean Pension Fund Buys $20 Million Shares In Coinbase

The National Pension Service (NPS) of South Korea has invested $20 million in Coinbase. The governmental pension fund of South Korea, NPS, announced a 9.09% return on investment for the first quarter of 2023. The fund’s overall asset worth increased significantly due to its outstanding performance, hitting an astounding $741.9 billion.

The Securities and Exchange Commission (SEC) filing states that NPS paid an average of $70.5 per share for 282,673 Coinbase shares. On Wednesday this week, Coinbase shares on Nasdaq had closed by 6.58%, gaining $98.15, a 192.1% profit from the start of 2023. News has it that Coinbase’s earning report recorded  $674.1 million in profit, up to 14.2% (YoY) year-on-year.

It also recorded a net loss that summed up to $545 million. NPS acquired Coinbase shares at a fair price, as revealed by the SEC filing, offering insight into the company’s investment strategy. Recent observation into the trend has shown that purchasing Coinbase stock demonstrates a sophisticated awareness of the industry’s potential for expansion and profitability.

Implications Of NPS Investment Prove Positive Trend Displayed In Analysis

Analysis on the Daily Coin platform wrote that the strategic decision highlights the growing recognition of digital assets as a key component of diversified investment portfolios, and a strong investment return for the fund supports it.

SEC filing shows that NPS acquired 282,673 share units from Coinbase at t $70.5 per share. This increased the company’s total investment to  $19.92 million, which is equivalent to KRW 26.1 billion. Information has it that Coinbase shares have been experiencing rapid gains after NPS made the acquisition. However, the funds have also made a substantial profit since the investment.

Pension funds globally have either fastened their process of adopting cryptocurrency or are legally restricted from participating in adopting digital assets. It was gathered that Fairfax County in Virginia has already ventured into the cryptocurrency industry since 2019.

Positive Future Looms For NPS, As SEC Releases Latest Filing

Popular opinion is that Coinbase is displaying strong potential now that the cryptocurrency market is moving towards a bull run. NPS has a long-instituted policy of investing in any digital assets with strong volatility. Historical analysis of the NPS investment pattern shows that the South Korean National Assembly in 2021 scolded NPS for having made multiple cryptocurrency-related investments.

Meanwhile, Coinbase shares surged by  5.14% from its former trading day, the same time BTC had a rally on November 9th, reaching its highest peak in 18 months. In other news, the Houston Firefighters’ Relief and Retirement Fund (HFRRF) has made the list as the first United States pension fund to make a significant investment in the cryptocurrency industry, with $25 million in Bitcoin investment.

Coinbase, on the other hand, has reported a loss of $2.2 million in the third quarter of 2023. Coinbase, in its latest financial report, also stated that it had a $545 million loss a year earlier. BlackRock has also contacted Coinbase to work as its spot Bitcoin ETF custodian.

The said contract has been widely accused of being responsible for the price of BTC reaching $38,000 within the week. Coinbase has revealed that it has also benefited from the growing success of its layer-2 network – which has recorded $590 million in Total Value Locked (TVL) for each L2Beat.