Tagged Bitcoin enemy number one by Peter Thiel, Berkshire Hathaway Inc (NYSE: BRK-A)(NYSE: BRK-B) CEO Warren Buffett now owns a stake in Bitcoin thanks to one of his investments.
What happened: In June 2021, Berkshire Hathaway invested $500 million in the Brazilian digital bank Nubank. Buffett’s Berkshire Hathaway expanded its position in the digital bank when the company went public as Now Holdings (NYSE:NU) in December 2021.
For months, many have pointed to Nubank as a cryptocurrency-friendly bank that could end up giving Buffett exposure to cryptocurrency trading. While Nubank launches cryptocurrency trading by Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) for its millions of users, the bank’s parent company also allocates 1% of its cash to Bitcoin, according to a CoinDesk report.
Selected users of Nubank can buy and sell Bitcoin and Ethereum from last week. The trading platform is expected to be available to all users by the end of July. Additional cryptocurrencies are expected to be added to the platform in the future.
Nubank has offered several ETFs for its clients that previously provided investment exposure to cryptocurrency.
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“There is no doubt that crypto is a growing trend in Latin America, a trend that we have been following closely and believe will have a transformative impact on the region,” Nubank CEO David Velez so.
Nubank has 53.9 million users in Brazil and several other Latin American countries.
Related Link: If Charlie Munger Spent ‘100 Hours Studying Issues’ Outside US, He’d Be More Bullish On Bitcoin Than Me, Says Michael Saylor
Why it’s important: Berkshire Hathaway owns a stake in Nu Holdings worth over $1 billion.
Buffett and Berkshire deputy chairman Charlie Munger have been outspoken critics of cryptocurrency, including Bitcoin.
Buffett famously called Bitcoin rat poison squared. Buffett told Berkshire shareholders that he would not buy Bitcoin even if it fell to $25.
Munger also spoke out about Bitcoin at the annual shareholder conference.
“When you have your own retirement account and your friendly advisor suggests you put all the money in bitcoin, just say no,” Munger said.
Through its wide range of investments, Berkshire Hathaway may have indirect exposure to Bitcoin and cryptocurrencies as more companies become crypto-friendly. Berkshire Hathaway is also a major shareholder in Visa Inc (NYSE:V), giving Buffett partial ownership of one CryptoPunk NFT.
This article was originally published on May 14, 2022.
Photo: Made with a photo from Aaron Friedman on Flickr
