South Korea’s National Pension Service Buys 280k Coinbase Shares
National Pension Service (NPS) manages the biggest pension funds in the world. The government institution recently purchased $20 million worth of Coinbase shares during the third quarter of 2023. This retirement fund is a public pension service for the country and is considered to be one of the biggest pension funds anywhere.
SEC Data Reveals NPS Investment in Coinbase
The NPS reportedly purchased 280,000 shares of Coinbase exchange during the 3rd quarter of 2023 as per SEC filing.
The investment has since gained 39% in value since the time of purchase. The filing reveals that NPS has acquired 282673 shares of Coinbase as mentioned in the stock holdings report with the Securities and Exchange Commission.
The investment is now valued at $27.7 million based on the per share price of $98.5. The profit percentage of the investment is around $7 million or 39%.
The Interest of Government Fund Entities in Crypto
Local media outlet News1 has reported that the public pension funds of South Korea has first time invested in a crypto business. The fund management entity has a policy of not participating in spot trading of cryptocurrencies such as Bitcoin on account of consider price volatility.
The National Assembly of South Korea criticized the government for investing in crypto-based business in 2021.
However, NPS countered the statement by retaining that it has been investing in digital currency services providing firms rather than direct trading. Data projections from Coinbase have revealed that its share value has reached $110 per unit in July, 2023.
The firm noted that Coinbase shares have increased by 170% on year-to-date metric. At the start of the current year the unit price of these shares were valued at $37.
On the other hand, the share price is still 74% down in comparison to its ATH of $300 in September, 2021. The growth of Coinbase shares has continued regardless of the ongoing lawsuit brought by Securities and Exchange Commission.
The federal agency has purported that the crypto trading platform has violated securities laws by offering tokens as unregistered securities. In response, Coinbase questioned the authority of SEC over cryptocurrency sector claiming that its definition of security was too broad.
Coinbase’s Performance in Third Quarter
Coinbase officials have claimed that the company is satisfied with its performance during the 3rd quarter despite declining trading volumes. The firm noted that its net losses are valued at $2 million during the 3rd quarter while there was year-on-year increase regardless of the lowering number of trading volume.
During the third quarter the company reported a loss of $545 million for 2022 as per its November 2nd filings. At the same time, the year-on-year revenue increased by 14.2% reaching $674.1 million. However, the revenue count decreased by 4.8% during on the quarter-on-quarter front.
London stock exchange aired a prediction of $653.2 million in revenue for Coinbase mentioned in Reuters report. The firm reported in its revenue filings that $334.4 million were generated in profits form subscriptions and features such as stablecoin and blockchain generated income.
The remainder of $288.6 million was generated from transaction fees and other trading related services. Trading volume fell from $26 billion in 2022 to $11 billion in the current year.
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