South Korea’s $1T Pension Fund Loses Billions on Crypto Stocks — What Happens Next?

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• NPS’s crypto-linked stock portfolio has dropped about 44% since Q3 2025.
  
• Strategy holdings give the fund indirect exposure to thousands of BTC.
  
• Future index rebalancing could increase or reduce crypto risk.

South Korea’s $1 trillion public pension fund, the National Pension Service (NPS), is seeing losses deepen across its crypto-linked equity holdings as digital asset markets cool and related stocks slide. While the fund maintains it does not invest directly in cryptocurrencies, its portfolio suggests otherwise in practice.

Strategy Position Highlights Bitcoin Sensitivity

A February 9 filing with the U.S. Securities and Exchange Commission revealed that NPS increased its stake in Strategy to 614,409 shares by the end of 2025. The position was worth roughly $93 million at the time, but falling prices have since cut that value significantly.

Strategy — widely viewed as a leveraged proxy for Bitcoin due to its massive holdings — has suffered alongside the broader crypto market. Bitcoin’s retreat to about $67,000 has weighed heavily on the stock, which remains far below its 2024 peak. According to Goldman Sachs, the company is currently among the most shorted equities on Wall Street.

With roughly 717,000 BTC on its balance sheet, Strategy’s market performance remains closely tied to crypto sentiment, amplifying both upside and downside exposure for investors like NPS.

Crypto Stock Portfolio Down Sharply

Strategy is only one part of a broader crypto-linked portfolio held by the pension fund. Its positions also include Robinhood, Coinbase, and Block — all of which have declined since the end of 2025.

Collectively, these holdings have fallen to roughly $338 million from a peak near $608 million just five months earlier, representing a drop of about 44%. Robinhood remains the largest position despite a sharp decline, underscoring how the fund’s crypto exposure extends beyond a single company.

Passive Index Tracking Masks Real Exposure

NPS has repeatedly said its holdings are a byproduct of tracking benchmarks such as the MSCI index rather than an intentional bet on digital assets. The crypto-linked stocks account for only about 0.25% of its US equity portfolio, a relatively small slice of its massive holdings.

Still, the exposure is meaningful. The fund’s stake in Strategy alone corresponds to indirect ownership of roughly 1,800 BTC. Across its positions, NPS remains tied to crypto market movements despite its official stance.

Meanwhile, Strategy’s Executive Chairman Michael Saylor continues to accumulate Bitcoin, reinforcing the company’s long-term commitment to the asset class regardless of price swings.

Also Read: South Korea Deploys AI to Catch Crypto Manipulation Faster — Here’s What It Means

Outlook: Rebalancing or Deeper Exposure?

Whether NPS trims its crypto-linked holdings or accumulates more through index rebalancing remains uncertain. The fund’s next quarterly filing, expected in May, may offer the first clues about how it plans to respond to the recent drawdown.

For now, one thing is clear: even passive exposure to crypto-linked equities can translate into real financial risk when markets turn.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.