South Korea's National Pension Service (NPS), the world's third-largest public pension fund managing over $1 trillion in assets, significantly increased its exposure to Bitcoin during a market downturn, according to recent regulatory filings. The fund expanded its position in MicroStrategy (MSTR) by 20% during the fourth quarter of 2025, a period in which Bitcoin's price fell from a cycle high near $126,000 to roughly $88,000.
According to a 13F filing submitted to the U.S. Securities and Exchange Commission on February 9, 2026, NPS held 614,409 shares of MicroStrategy as of December 31, 2025. This was an increase of 102,769 shares from its Q3 2025 holding of 511,640 shares. The position was valued at approximately $93.4 million at the end of Q4. However, with Bitcoin's price subsequently dropping to around $67,000 and MicroStrategy stock falling to $133.40 per share by February 27, 2026, the value of the NPS's MicroStrategy holding has declined to an estimated $82 million, representing a 12% loss since year-end.
MicroStrategy, the world's largest corporate Bitcoin holder with 717,722 BTC, functions as a leveraged proxy for Bitcoin's price. Its stock is down 75% from its November 2024 all-time high of $457 and is currently the most-shorted stock on Wall Street, according to Goldman Sachs.
The NPS's crypto-related investments extend beyond MicroStrategy to a portfolio of four stocks. As of February 27, 2026, the combined portfolio, which also includes Robinhood (HOOD), Coinbase (COIN), and Block (XYZ), has fallen to an estimated $338 million from a peak of approximately $608 million at the end of Q3 2025—a decline of roughly 44% in five months. Robinhood remains the largest position by value despite losing 30% since year-end.
Officially, the NPS maintains that these holdings are not a direct bet on digital assets, stating in a September 2024 response to the Korean National Assembly that it does not consider virtual assets an investment target. The positions exist because companies like MicroStrategy and Coinbase are included in the MSCI benchmark index that the NPS tracks for its overseas equity allocation. The entire crypto-stock portfolio represents only about 0.25% of the fund's $135 billion U.S. equity portfolio.
Despite this official stance, the political and regulatory landscape in South Korea is shifting. During the 2025 presidential election, both major parties pledged to allow the NPS to invest directly in digital assets. South Korea's financial regulator has also begun allowing greater corporate participation in crypto markets, signaling a broader institutional opening.
For now, the NPS holds indirect Bitcoin exposure equivalent to roughly 1,800 BTC through its MicroStrategy shares alone. The fund's next 13F filing, covering Q1 2026, is due by mid-May and will reveal whether it continued to accumulate positions during the market downturn or initiated a rebalancing reduction.
