Reshab AgarwalIt seems Warren Buffet is slowly considering the idea of investing in Bitcoin. Even though he is not dabbling in Bitcoin directly, Warren Buffet invests $1B in bitcoin-friendly Nubank, which is the largest fintech Bank in Brazil. At the same time, his company also dumped a portion of their Visa and Mastercard holdings. The recent filings suggest that they got their hands on the bank’s Class A stock in the last quarter of 2021.
Latest filings of Berkshire Hathaway
In the recent securities filings, Berkshire Hathaway dumped $1.8 billion of Visa stocks and $1.3 billion in Mastercard. Their investment in Nubank at the same time suggests a shift from card companies to fintech banks. Do note that this is not Warren’s first investment in Nubank. His firm invested $500 million in the bank back in July 2021. While this is great, it also makes me question Warren’s own statement saying that Bitcoin doesn’t create anything. Since Nubank has a Bitcoin-friendly approach, it is difficult to understand Buffet’s POV here.
Warren Buffet is indirectly invested in crypto and quite heavily.
First of all, let’s start with the latest investment, which is Nubank. The bank is very friendly in terms of the BTC approach. They also have their own BTC ETF, which Easynvest (Nubank owns it) offered in June 2021. While Warren Buffet has a very strong opposing view of Bitcoin, it is clear that he doesn’t have a problem if making positive returns from the same. It’s not just one company or bank, though, in Warren’s portfolio.
Other holdings in his portfolio have also started to offer Bitcoin services in 2021. In Oct 2021, U.S. Bancorp started offering crypto custody services for institutional investors. Then we also had the Bank of America launch a research initiative in crypto during the same time. BNY Mellon has also been offering many services in Bitcoin.
All this is a very calculated way of taking some risk with crypto. Warren doesn’t have to take back his criticism, save his face and reap the benefits of crypto growth indirectly. All in all, this is a very positive step for the growth of the crypto space and fintech companies based on them.
What are your thoughts as Warren Buffet invests $1B in bitcoin-friendly Nubank? And do you think this is a positive step for the crypto space? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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