By John Ikani
Warren Buffett’s Berkshire Hathaway made a $500 million investment in the parent company of Nubank, a privately held digital bank based in Brazil.
Nubank in a press release disclosed that the investment proceeds will be used primarily for its international expansion and attracting talents from leading tech brands.
The fast-growing bank reportedly has more than 40 million customers in Brazil, Mexico, and Colombia.
Nubank is known for its exposure to the pioneer Crypto asset, Bitcoin, after acquiring Easynvest, a fast-growing unicorn brokerage platform with 1.5 million customers and a reported S$ 3.8 billion in assets under management.
The Brazilian bank is also known for offering its customers a Bitcoin Exchange Traded Fund investment service. The Brazilian firm disclosed that Berkshire Hathaway’s investment is an extension of the eighth fundraising event carried out early this year.
What you should know
Warren Buffet, the highly revered billionaire worth about $109 billion at the time of drafting this report, has a negative bias on digital assets investments, saying it basically has no real value and that he will never buy or invest directly in the Crypto market.
Buffett is no stranger to investing in financial firms, as traditional banks and insurance companies make up a large portion of Berkshire’s investment portfolio.
According to securities filings,
Buffet sold nearly all of his stake in Wells Fargo by the end of the first quarter, a move which experts believe will enable him invest in other projects.
Following the announcement of his investment in Nubank, Berkshire class B shares were little changed as the stock has risen nearly 25% year to date.