Warren Buffett makes a $1 billion investment in a Bitcoin-friendly Neobank.
In addition to selling a chunk of its Visa and Mastercard holdings, Warren Buffett’s Berkshire Hathaway boosted its exposure to Nubank as investment, the largest fintech bank in Brazil, which is also popular among the country’s Bitcoin investors.
According to the filing, the industrials conglomerate stated in a regulatory filing late Monday that it had purchased $1 billion worth of Nubank Class A stock in the fourth quarter of 2021. Visa and Mastercard stock, on the other hand, were sold for a total of $1.8 billion and $1.3 billion in value, respectively.
Former hedge fund manager Paul Tudor Jones had previously dismissed developing decentralized financial solutions such as Bitcoin (BTC), dismissing it as an asset that “does not create anything.”
The relationship between Buffett and Bitcoin
In making an additional investment in Nubank, Buffett demonstrates his understanding of the fundamental topic of the fintech sector: the digitization of financial services, as well as his readiness to associate with businesses that are involved in the cryptocurrency sector.
Details are as follows: Since June 2021, Easynvest, a trading platform that Nubank purchased in September 2020, has been actively marketing a Bitcoin exchange-traded fund (ETF).
As a result, it appears that Nubank, which remains exposed to the developing crypto industry through Easynvest, may be able to exploit the new revenue potential to benefit its top investor, Warren Buffett, despite Buffett’s belief. That Bitcoin is “rat poison squared.”
Buffett’s portfolio is brimming with cryptocurrency-friendly businesses.
For example, in October 2021, less than a month before Bitcoin reached an all-time high of $69,000, the fifth-largest U.S. bank, U.S. Bancorp, announced the launch of a cryptocurrency custody service for its institutional investment managers, citing an increase in demand from their “fund services clients” over the previous few years.
Bank of America established a cryptocurrency research program in October 2021, claiming “increased institutional interest” as the reason for the venture’s creation.
According to Greg Waisman, co-founder and COO of cryptocurrency wallet service Mercuryo, “Buffett’s Nubank investment can be characterized as his way of supporting the fintech/crypto world without apologizing for his previous criticisms.” Buffett is now supporting the “digital currency ecosystem indirectly,” according to Waisman.