Berkshire Hathaway, an American conglomerate holding company, has made a hefty investment in Nubank, a digital bank in Brazil. The investment, worth half a billion US dollars, was largely unprecedented given the company’s CEO-Warren Buffet’s negative sentiments and vocal hatred regarding bitcoin.
Nubank is one of the largest financial technology banks in the region and is well known for its digital account NuConta and its Bitcoin ETF offers to clients. It also offers support to small business owners and has a wide range of products such as loans, insurance plans, and investment options.
The deal with Berkshire Hathaway will boost the bank’s value to $30 billion and it becomes the biggest single investor the bank has had yet. In a previous statement, the bank stated that it aimed at increasing digitisation and uptake of eCommerce in order to maintain its position as a leading fin-tech institution.
Warren Buffet has in the past been very vocal about his dislike for cryptocurrencies to the extent that he referred to bitcoin as ‘rat poison squared. He even went as far as stating that “Cryptocurrencies basically have no value and they don’t produce anything…In terms of value: zero.” He further termed them as being problematic and disruptive to financial systems citing fraudulent activities which resulted in losses for investors.
Buffet’s sentiments have been mirrored by Berkshire’s VP Charlie Munger who stated that BTC was too volatile to be used as an exchange.