16 Aug, 2024

Why South Korea’s NPS Invested $33.75M in MicroStrategy and Bitcoin

South Korea's National Pension Service (NPS), one of the world’s largest public pension funds, has expanded its portfolio by investing $33.75 million in MicroStrategy shares. This acquisition of 245,000 shares marks a significant foray into the digital asset industry, reflecting the fund’s strategy to diversify and seek higher returns. The investment represents 0.04% of the NPS’s total U.S. stock holdings, according to a recent 13F filing.NPS Expands Digital Asset Investments After Coinbase SuccessThis isn’t the NPS's first move into the crypto world. In Q3 2023, the pension fund invested in Coinbase, purchasing 282,673 shares. The fund capitalized on the stock’s 40% price surge, selling 23,956 shares and realizing considerable profits. The success of this investment may have fueled its decision to further invest in digital assets by acquiring MicroStrategy shares.MicroStrategy: A Leader in Bitcoin HoldingsMicroStrategy, led by Bitcoin advocate Michael Saylor, is renowned for its aggressive Bitcoin strategy. The company currently holds 226,500 Bitcoin, worth over $13 billion. This makes MicroStrategy the largest corporate holder of Bitcoin, owning almost 1% of the world’s supply. Under Saylor's leadership, the company has continually increased its Bitcoin holdings, even during periods of market downturn.South Korea's Regulatory Shift Toward Digital AssetsThe NPS's move into crypto-related stocks coincides with South Korea’s evolving digital asset regulations. The introduction of the Virtual Asset User Protection Act has provided a clearer framework, reducing the risk for institutional investors like NPS. This regulatory clarity may have bolstered the pension fund’s confidence in investing in companies with strong exposure to Bitcoin.Long-Term Crypto OutlookThe NPS's investment in MicroStrategy is part of a broader strategy to diversify its portfolio and tap into the high-growth potential of digital assets. With South Korea advancing its regulatory framework and MicroStrategy’s unwavering commitment to Bitcoin accumulation, this move reflects the growing institutional belief in the future of cryptocurrencies.This calculated investment positions NPS at the forefront of a global shift toward digital asset integration in traditional finance.

12 Aug, 2024

Laos Establishes Bullion Bank to Secure Gold Reserves, Stabilize Kip

The Ministry of Finance, has signed an agreement with PTL  Holding Co., Ltd. on 7 August to establish the Lao Bullion Bank to build gold reserves, enhance financial stability, and strengthen the Lao Kip. According to Chanthone Sitthixay, the Chairman and Founder of PTL Holding Co., Ltd., the bullion bank will allow both individuals and legal entities to deposit their gold and use other financial services offered by the bank, enhancing its role as a central institution in the gold market.The bank will also standardize gold trading and investment, attracting both domestic and international stakeholders. Expected to begin operations next month, the bank will contribute to the development of strategic projects and elevate Laos’s financial standing on the global stage, aligning with the government’s vision for economic independence and stability.Minister of Finance, Santiphab Phomvihane emphasized the significance role of the goal play in affecting the economic system, saying that its value is for enhancing socio-economic development and being able to address current financial turbulence, facilitate fundraising, and improve liquidity.In addition, building the Bullion Bank will preserve the existing source in the country, which will make Laos a self-sustained economy, along with being able to meet standardized regional and global markets. Next month, the bank is anticipated as a phase 1 to be open and in late November of this year, to operate in full service.