Site icon Bitcoin, Cryptocurrencies and Blockchain Technology

Brazilian Bank Buys Bitcoin And Makes Warren Buffet An Indirect Bitcoin Holder


Investment legend Warren Buffet who is now well past his nineties and known as a great opponent of bitcoin has an indirect bitcoin investment to his name. This is because Berkshire Hathaway, Buffet’s investment firm, has a large position in Brazil’s Nubank, which has decided to invest 1 percent of its reserves in bitcoin.

It is yet to be seen how happy Buffet is with this news, as he once called bitcoin rat poison. In 2021, Berkshire Hathaway invested $1 billion (€950 million) in Nubank. So with that, Buffet now indirectly owns bitcoin. However, it cannot be a big surprise for Buffet and company colleagues, as Nubank is known as a bitcoin-friendly bank.

The statement from Nubank

Nubank says this is to reinforce the company’s belief in the current and future potential of bitcoin. The Brazilian bank is using Paxos’ service to offer customers the opportunity to buy primary cryptocurrency. As a result, Nubank customers cannot send their bitcoin from the platform to their own wallet.

However, the bank plans to add that option in the future. Currently, this option is still in the testing phase, with a few percent of the bank’s customers already enjoying that capability. Nubank expects to add the option to send bitcoin to a private wallet for all customers in the coming months. So until then, most Nubank customers are forced to keep their coins within Nubank.

Bitcoin is the best

The reason Nubank chose bitcoin as a reserve asset on its balance sheet is bitcoin’s market share. The largest cryptocurrency still holds 40 percent of this market and is therefore seen as the most secure option crypto has to offer. With the investment, Nubank looks to definitively establish itself as a bitcoin-friendly bank. In addition to buying bitcoin through its normal trading platform, customers can also invest in the Brazilian Bitcoin ETF.

Painful moment for Warren Buffet?

It remains to be seen to what extent Warren Buffet knew about these plans. After all, not long ago the seasoned and successful investor was still shouting that he wouldn’t buy all the bitcoin in the world for $25 yet and that bitcoin has no value. A major investment from Berkshire Hathaway clearly does not share that opinion with Buffet and is instead betting ever larger on crypto.

Nubank’s shares are for sale on the New York Stock Exchange, among others, and the market seems at least satisfied with the bank’s bitcoin investment.

Exit mobile version