South Korea’s NPS Purchased Stake In Coinbase For $20M, Yields About 40% Profit
By Benzinga
The National Pension Service (NPS) of South Korea purchased a stake in Coinbase (NASDAQ:COIN), the largest virtual asset exchange in the U.S.
What Happened: The NPS acquired approximately 282,673 shares, a $20 million (26.1 billion won) value.
The deal marks the NPS’s first inclusion of a virtual asset-related company in its U.S. stock portfolio, a local news outlet reported.
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Why It Matters: This strategic move diversifies the NPS investment portfolio.
Coinbase was listed on Nasdaq in April 2021 and the exchange's performance and stock prices often correlate with the trends in virtual asset prices.
The NPS has traditionally avoided direct investment in virtual assets due to their volatility.
In 2021, the NPS faced scrutiny from the National Assembly after it was revealed that a fund they invested in had stakes in a virtual asset-related business.
However, the NPS clarified that its investment was solely in the exchange, not in the virtual assets themselves.
Following the NPS's investment in Coinbase, the fund is reportedly seeing substantial profits.
With the average purchase price per share at $70.50, and considering Coinbase's recent closing price of $98.15, the NPS's investment has yielded about a 40% profit in just one quarter.
This development is crucial for investors and market watchers as it signifies a growing interest and confidence in the virtual assets market by a major national pension fund.
