NPS purchased approximately $34 million worth of MicroStrategy (MSTR) stock in the second quarter of this year, according to a public filing earlier this week. This investment is considered one of NPS’s biggest indirect forays into the cryptocurrency world.

MicroStrategy, as it is known, is one of the largest institutional owners in the bitcoin (BTC) space. Under the leadership of CEO Michael Saylor, the company began purchasing large amounts of bitcoin to add to their balance sheet, a strategy that directly impacted the company’s stock performance. Therefore, NPS’s investment in MicroStrategy shares can be considered an indirect investment in bitcoin.

The fund purchased 24,500 shares at an average price of $1,377.48 before the 1-for-10 stock split MicroStrategy announced earlier this month. Following this split, the total number of shares held by NPS increased to 245,000 and the total value of these shares was determined as $32.32 million based on the last closing price of $131.93.

MicroStrategy’s commitment to bitcoin directly impacts the company’s stock performance. Earlier this month, Wall Street brokerage Benchmark raised its price target on the Michael Saylor-led firm to $2,150 from $1,875.

This upgrade comes despite MicroStrategy missing its second-quarter revenue target, reflecting investors’ confidence in the long-term growth prospects for bitcoin prices. Benchmark’s decision reinforced confidence in MicroStrategy among investors and positively impacted the company’s future potential.

NPS didn’t just invest in MicroStrategy; He also owns a significant stake in Coinbase. NPS holds 229,807 shares of Coinbase (COIN), worth more than $45 million based on Coinbase’s last closing price of $197.12.

Coinbase is known as one of the largest cryptocurrency exchanges in the world, and NPS’s share investment in this exchange demonstrates the fund’s interest and belief in the cryptocurrency sector.

NPS began purchasing shares of Coinbase in 2023, purchasing 282,673 shares in the process at an average price of $70.5. Coinbase’s share prices fluctuate depending on the overall performance of the cryptocurrency market, but this investment decision by NPS shows that the fund is pursuing a long-term strategy.

Owning shares in a major cryptocurrency exchange like Coinbase reflects NPS’s belief in the growth potential of the cryptocurrency market.

NPS, South Korea’s largest pension fund, is trying to manage its risks by diversifying its portfolio with such investments. Although the cryptocurrency sector is considered riskier than traditional financial instruments due to its high volatility, large funds such as NPS do not ignore the growth potential in this market.

These investments in MicroStrategy and Coinbase can be considered part of the fund’s long-term strategy.

Such investments by NPS increase interest and confidence in the cryptocurrency sector not only in South Korea but also on a global scale. These investments show that cryptocurrencies are becoming more accepted in the traditional financial world and that large institutional players are increasingly interested in this space.

These moves by NPS could set an example for other large funds and attract more institutional investors in the cryptocurrency sector.