South Korea's NPS Sees 39% Value Increase Post Coinbase Shares Acquisition
Summary:
South Korea's National Pension Service (NPS) reportedly purchased over 280,000 shares of global cryptocurrency exchange Coinbase in Q3 of 2023, leading to a 39% increase in value. Despite traditionally shying away from the volatile crypto market, the NPS clarified that its investment focused on the exchange platform, not the cryptocurrencies themselves. Despite facing a lawsuit from the U.S. SEC, Coinbase experienced significant growth in 2023, with its shares marking a nearly 170% YTD increase.
South Korea's National Pension Service (NPS), one of the largest pension funds globally, has seen a 39% increase in value after purchasing more than 280,000 shares in Coinbase, the worldwide cryptocurrency exchange, in this year's third quarter. The NPS declared the acquisition of 282,673 shares of Coinbase in the third segment of 2023 in a filing submitted to the United States Securities and Exchange Commission (SEC) on November 15. Valued at $27.7 million, based on Coinbase's closing record of $98.15 on November 15 as per TradingView data, the pension fund reportedly bought this batch of shares for nearly $19.9 million, rendering a profit of $7 million, or a percentage of 39%. Local news agency News1 reported that this is the first time the NPS has invested in Coinbase stock, as it traditionally refrained from directly investing in volatile cryptocurrencies like Bitcoin. In 2021, the National Assembly of South Korea reportedly scrutinized the NPS for its investment in a crypto-affiliated firm. However, the NPS clarified that it invested only in the exchange, not considering cryptocurrencies as an investment target. Despite the fluctuating crypto trading volumes in Q3, Coinbase's stocks have surged impressively in 2023, peaking at $110 per share in July. Starting 2023 at approximately $37, Coinbase shares have marked close to 170% increase year-to-date, although still 74% lower than its one-time high of over $300 in September 2021. In 2023, despite a lawsuit from the U.S. SEC accusing Coinbase of violating U.S. securities laws by offering unregistered securities (or specific cryptocurrencies) for investment, the exchange noted significant growth. Yet, the exchange refuted SEC's wide definition of security in October, challenging its jurisdiction over crypto-related matters.
Published At
11/16/2023 9:01:30 AM
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