Warren Buffett’s investment company Berkshire Hathaway has made a $500m investment in digital bank Nubank’s parent company.
Founded in 2013, the bank operates out of Brazil and is currently servicing 40 million customers.
Nubank has an established profile in the global digital finances market. It is also considering the possibility of going public through an initial public offering, but those plans have not been set in stone.
The investment is nevertheless interesting, especially when you consider Buffett's stance towards crypto. The “Oracle of Omaha” has equated cryptocurrencies to gambling and took a stab at those associated with it, including Robinhood.
He argued that bitcoin and associated crypto assets have no value as they fail to contribute and produce anything, but investors have often argued that the same is true of gold.
Nubank acquired Easynvest in 2020 and now allows consumers an easy way to invest in crypto without paying any commissions.
It’s possible that Berkshire Hathaway is not pursuing cryptocurrencies but gauging good financial metrics.
As always, Buffett is known as a “HODLER” to borrow the term from the crypto world, which essentially means that he buys stocks or shares he sees potential in and holds onto his purchase over an extended period of time.
Buffett has not hesitated to divest from gold as well, making the same argument that the precious metal fails to produce any real-world value.