Bitcoin News: Warren Buffett gave another insight into the acquisitions in the last quarter. He has topped up at Nubank, which is considered to be extremely Bitcoin-friendly.
An SEC report released Monday, February 14 shows that Berkshire Hathaway has sold a portion of its Visa and Mastercard shares. On the other hand, the investment company increased its stake in Nubank , the largest Brazilian fintech company. In the fourth quarter of 2021 alone, the “Oracle of Omaha” bought shares worth around one billion US dollars. What’s behind it? Is Warren Buffett a crypto fan after all?
The Nubank is a Brazilian neobank and currently the largest in all of South America. It was founded in 2013 by Colombian David Vélvez, Brazilian Christina Junquerira and American Edward Wible. In 2018, the young fintech company reached a valuation of one billion US dollars for the first time, making it a so-called unicorn. Nubank ‘s investors include well-known names such as Seqouia Capital , but also the Founders Fund initiated by Peter Thiel .
If you continue to sift through Nubank’s list of early investors, you’ll come across the name Berkshire Hathaway, among others. The holding company had even added 500 million US dollars in a Series G financing round in June 2018 — BTC-Echo reported . In September 2020, Nubank acquired the trading platform Easyinvest , which has been offering a Bitcoin ETF since June 2021. The IPO followed in December 2021. A valuation of 41.5 billion US dollars was achieved. However, the share price then fell from around USD 12 to below USD 7 in January 2022. In the meantime, however, the share price has recovered strongly and is currently quoted at around USD 9.
Anyone who has been following Warren Buffett for a long time will have noticed that the legendary investor is certainly not one of the biggest Bitcoin fans. As recently as 2018, he had dubbed Bitcoin “rat poison squared” and thereby drawn the wrath of the crypto community. Two years later, shortly before the Corona crash, he made it clear to the news channel CNBC that he did not own any cryptocurrencies and would never own any (see video). Buffett’s “right-hand man,” Charlie Munger, has also shot at cryptocurrencies — particularly bitcoin — several times, calling them “disgusting,” BTC-ECHO reported . According to Munger, the “whole damn development is disgusting and against the interests of civilization.”
However, a stake also caused a stir outside of the crypto community. According to Berkshire Hathaway’s latest SEC filing, the Buffett group stocked up on Activision Blizzard shares in a big way in the fourth quarter of 2021. Berkshire Hathaway purchased 14,658,121 shares, valued at approximately $975 million at the time of publication. If Buffett were to sell the shares now, it would put the old master around $200 million in the coffers.
But it gets even better. As Microsoft announced in January 2022, it wants to take over the gaming group at a price of $95 per share. Should this deal actually go through in the end, there would be another around 200 million dollars on top. Not a bad return for an investor
Now one could argue that Buffett does not invest directly in Bitcoin and Co., but in a bank. Even if it is a so-called neobank, this is nothing earth-shattering. Nevertheless — the Nubank is South America’s largest bank, which is active in the crypto business, among other things. Warren Buffett may think what he wants. The mere fact that he holds crypto-friendly investments in his portfolio shows that Bitcoin and Co. are increasingly arriving in the mainstream and that even Warren Buffett can no longer avoid it. It’s a bit reminiscent of Buffett’s relationship with technology stocks, which he has owned for a long time — with a few exceptions like IBM– had avoided to the utmost.
Only with the participation in Apple did a rethinking seem to have taken place, so that Buffett also joined Amazon a little later. The latter, however, was more thanks to his investment managers Todd Combs and Ted Weschler. It is also interesting that even the classic banks such as BNY Mellon , which Buffett holds in his portfolio, already offer cryptocurrency services.
Warren Buffett’s investment firm Berkshire Hathaway bought $1 billion worth of shares in Brazilian fintech Nubank in the fourth quarter of 2021. This emerges from a recently published mandatory announcement by the US Securities and Exchange Commission.
Publicly traded Nubank is one of Latin America’s most valuable fintechs and a proponent of blockchain technology and cryptocurrencies. Among other things, Nubank offers financial products such as a Bitcoin exchange-traded fund (ETF).
Nubank only went public on the New York Stock Exchange in early December 2021 in a spectacular IPO. The IPO raised $2.6 billion. Nubank currently has a market capitalization of almost 40 billion US dollars.
While Buffett’s holding company invested $1 billion in Nubank, it also divested $1.3 billion of Mastercard stock and $1.8 billion of Visa stock.