Crash,” “Plummets,” “Massive Losses,” “Bitcoin Bet,” “Disaster

Korea’s $1T Pension Fund Grew Its <a href="https://jpyeur.com/btc-usd/">Bitcoin</a> Bet — Then Crashed Harder

South Korea’s National Pension Service, one of the world’s largest pension funds with over $1 trillion in assets, increased its investment in Strategy Inc (MSTR) by 20% in the last three months of 2025. This happened during a period when the price of Bitcoin dropped from around $126,000 to about $88,000.

The fund is now experiencing increasing losses. Bitcoin’s price has fallen to about $67,000, and all four cryptocurrency stocks held by the fund have decreased in value since the end of last year.

What the Filing Shows

A recent filing with the US Securities and Exchange Commission shows that NPS increased its holdings in Strategy stock. As of December 31, 2025, NPS owned 614,409 shares, up from 511,640 shares at the end of September – a gain of 102,769 shares. The total value of this position was around $93.4 million at the end of the year.

Strategy holds more Bitcoin than any other company, with a total of 717,722 coins purchased at an average price of $75,950 each. Because its stock price closely follows Bitcoin’s value, it has recently dropped significantly. Currently, Strategy’s stock is down 75% from its peak in November 2024 and is the most heavily shorted stock on Wall Street, according to Goldman Sachs.

NPS initially purchased shares of Strategy in the second quarter of 2024, investing around $34 million for 24,500 shares before a stock split (equivalent to 245,000 shares after the split). They’ve continued to increase their investment in Strategy in subsequent quarters.

Quarter Shares Approx. Value Change
Q2 2024 245,000 ~$34M Initial position
Q4 2024 217,100 ~$63M Trimmed
Q1 2025 289,735 ~$84M +72,635 shares
Q2 2025 507,093 ~$205M +217,358 shares
Q3 2025 511,640 ~$165M +4,547 shares
Q4 2025 614,409 ~$93M +102,769 shares

The company’s value fell sharply between the second and fourth quarters – from $205 million to $93 million – even though the number of shares increased. This drop mirrors the significant decline in the company’s stock price during those months.

Four Crypto Stocks, All Falling

This crypto investment is one part of a larger portfolio NPS manages across four different companies. Here’s a look at how each investment performed at the end of the year, and their current prices as of February 27, 2026.

Stock Shares Q4-End Value Current Price Est. Current Value Since Q4-End
Strategy (MSTR) 614,409 $93.4M $133.40 ~$82.0M -12%
Robinhood (HOOD) 1,970,461 $222.9M $79.45 ~$156.5M -30%
Coinbase (COIN) 298,117 $67.4M $181.06 ~$54.0M -20%
Block (XYZ) 833,124 $54.2M $54.53 ~$45.4M -16%
Total $437.9M ~$337.9M -23%

The portfolio reached its highest value of around $608 million at the end of September 2025. However, with recent stock price changes, its value has dropped to about $338 million – a decrease of approximately 44% over the past five months.

Although its value has decreased by 30% since the start of the year, Robinhood is still our largest investment. We first added it to our portfolio in the first quarter of 2025, and it became our biggest cryptocurrency holding in the third quarter of that year.

Benchmark Tracking, Not a Bitcoin Bet — Officially

The National Pension Service (NPS) states its investments in cryptocurrency-related stocks aren’t intentional investments in digital assets themselves. In a September 2024 response to Korean lawmakers, the NPS explained it doesn’t actively seek out virtual assets as investments. Instead, these holdings occur because companies like Strategy and Coinbase are part of the MSCI index that the NPS uses as a guide for its international stock investments.

The cryptocurrency investments make up a very small portion – about 0.25% – of NPS’s $135 billion stock portfolio. Considering the fund manages over $1 trillion in total, this amount is practically negligible.

The political situation is changing rapidly. In the 2025 presidential election, both major parties promised to let the National Pension Service (NPS) invest directly in cryptocurrencies – a significant change from their previous position. Additionally, South Korea’s financial regulator is now permitting companies to participate in crypto markets, suggesting a wider acceptance from institutional investors.

Currently, this has a significant impact: NPS indirectly holds Bitcoin worth about 1,800 BTC through its 614,409 shares in Strategy. Across all four stocks it owns, the fund’s performance is linked to Bitcoin, despite its stated policy of not investing in it.

What Comes Next

Michael Saylor, Executive Chairman of Strategy, keeps buying Bitcoin, even as the price fluctuates. In late February 2026, the company made its 100th Bitcoin purchase. However, Strategy’s market value (mNAV) has dipped below 1.0, meaning its stock is currently worth less than the Bitcoin it holds. Saylor has confirmed he doesn’t intend to sell any of the Bitcoin.

With NPS, the key question is whether simply following the market will continue to result in buying low, or if a portfolio adjustment will cause holdings to decrease. We’ll get a clearer picture with the next quarterly report, due in mid-May, which covers the first three months of 2026.

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2026-02-27 07:39