The money of Warren Buffet is saying something else now contrasting to what he had said a couple of years ago about cryptocurrency. His Berkshire Hathaway company is learned to have bought stock of a digital bank worth $1 billion and that primarily eyes on the crypto segment.
The investment in Nubank shares was revealed through an SEC filing lately. The Brazil-based digital bank is the largest in Latin America in the category that is different from traditional banks with respect to not relying on any physical location and simultaneously focusing mainly on digital services. Users can invest money in Nubank through its NuInvest unit and via Bitcoin ETF.
Buffet, who is the CEO and chairman of Berkshire Hathaway, called the crypto segment rat poison and not equipped with any value earlier. His longtime partner Charlie Munger simultaneously tried to avoid voicing strong opinions on the segment. He supported the decision of China about the ban of Bitcoin in the country and called for similar actions from the US government.
This is not the first time Berkshire has invested in the bank even though the owner voiced against the crypto segment. Last summer, the company bought a stake worth $500 million in it.
Meanwhile, it is noticed Berkshire dropped investment in financial assets last year while increasing the same in the cryptocurrencies. The SEC filing reveals the drop was more than $3 billion in Mastercard and Visa shares.
Even though Munger and Buffet have different negative views of the crypto sphere, it is true their company is viewing it completely differently and finding opportunities in the digital finance segment.
Cristina Junqueira, co-founder of Nubank, said the company has immense opportunity in Latin America where customers have horrible experience in the traditional banking system with respect to high fees and other issues.
Nubank was founded in May 2013 by David Velez, Cristina Junqueira and Edward Wible. It deals in various products including credit card, digital bank account, personal loans and cashback reward program. It is based in Sao Paulo, Brazil.
The fintech bank is the largest in Latin America in its own segment and has offices in Germany, Argentina and Mexico. It launched its IPO in December 2021 by getting listed on the NYSE. The company was then valued at $45 billion.
With the issue of IPO, Cristina achieved the status of a billionaire and was the second woman in the country to reach the mark. She held 2.9 percent shares in the company.