Warren Buffet’s Berkshire Hathaway has invested $ 500 million in the parent company of private digital bank Nubank, which offers cryptocurrency investment products to its users.
According to CNBC, Nubank is a Brazilian-based private bank founded in 2013 and has around 40 million customers. The company’s CEO has announced that an IPO is currently planned but is likely in the future.
The $ 500 million investment is noteworthy as Buffett is a well-known Bitcoin critic who has historically referred to the cryptocurrency as a “gambling device” and argued that it is worthless because it produces nothing. The investor has brought a similar case against gold.
In particular the digital bank acquired Easynvest, a digital investment platform, at the end of last year. The platform allows anyone to invest without commission and offers theirs Users have access to Bitcoin exchange-traded funds and productsincluding 3iQ’s QBTC bitcoin investment product.
Clarification: Nubank’s acquisition of Easynvest enables investments in Bitcoin via Bitcoin ETFs
– Blockworks (@Blockworks_) June 8, 2021
Berkshire Hathaway has notably made significant investments in financial companies in the past, with traditional banks and insurance companies making up a large portion of its portfolio. However, by the first quarter of the year, Buffett had sold almost all of his stake in Wells Fargo.
Last year the Oracle of Omaha also invested in the gold mining company Barrick Gold, but apparently sold its stake in it a few months later. For the investor, gold and bitcoin, unlike companies or farms, are unproductive assets. When investors buy these assets, they are counting on the next person to pay more than “the asset itself if it fails”.