Berkshire Hathaway, a multinational conglomerate owned by Warren Buffet has invested $1 billion in Nubank – Brazil’s largest fintech platform. After selling billions of dollars worth of stock in Visa and Mastercard, Berkshire Hathaway has purchased Nubank Class A stock in the last quarter of 2021.
Warren Buffet’s interest in Bitcoin
A recent filing with the securities and exchange commission (SEC) on February 14th revealed Berkshire invested billion dollars to buy Nubank Class A stocks. Around the same time, the company sold around $1.3 billion worth of Mastercard and $1.8 billion worth of Visa stocks.
The recent investment in the Brazilian fintech company will help Berkshire Hathaway gain exposure to a number of fintech companies.
Why is Nubank so popular and is Warren Buffet warming up to digital currencies?
One of the reasons why Nubank has become so popular is its large presence in the Brazilian fintech space. Besides, it is also the largest fintech bank in Latin America, making it one of the most attractive companies to invest in.
It is also a household name among Bitcoin investors in and around Brazil. Many experts suggest that Berkshire’s $1 billion investment is an indication that Warren Buffet may be gradually opening up to digital currencies.
Previously, Warren Buffet had made a subtle statement about emerging Defi solutions including Bitcoin. He said that these digital assets “do not create anything”.
Berkshire Hathaway’s previous investment in Nubank
In the middle of 2021, Berkshire had invested around $500 million in Nubank. The objective was to use the capital to expand internationally. After Nubank’s debut in the New York Stock Exchange (NYSE) in 2021, Berkshire reaped a $150 million investment return.
Today, Warren Buffet has a range of companies in his portfolio that have a direct or indirect association with Bitcoin and similar digital currencies. At present, the billionaire has shown little interest in giving up his position in Nubank.
Buffet’s increasing willingness to be involved in the crypto space primarily points to strides in Defi and fintech spaces. Having said that, Buffet does not have any direct investments in Bitcoin. The recent developments are a clear indication that Buffet is more or less backing the present crypto ecosystem.
How will Berkshire gain from the recent partnership
Nubank has scooped trading platform Easynvest in September 2020. Since 2021, Nubank offers a Bitcoin ETF known as QBTC11. This ETF is strongly backed by QR Asset Management.
This makes it clear that Nubank’s presence in the crypto through Easynvest can prove to be lucrative for Berkshire and a lucrative revenue stream.
As per Bloomberg’s data, crypto investment products saw exponential growth in 2021, doubling in number from 35 to 80. The total valuation of such assets hit $63 billion, a figure that is much higher than the modest $24 billion seen at the beginning of 2021.
Feature Image Source: Nubank