Berkshire Hathaway, the company led by CEO Warren Buffett, has invested $500 million in a pro-bitcoin digital bank. Nubank says it will offer bitcoin investment following its acquisition of brokerage firm Easynvest which offers the trading of Brazil’s first bitcoin exchange-traded fund (ETF).
Berkshire Hathaway Invests in Pro-Bitcoin Digital Bank
Warren Buffett’s Berkshire Hathaway Inc. has invested $500 million in the parent company of Nubank, a Brazil-based bitcoin-friendly digital bank, the South American company announced Tuesday. This is part of the bank’s Series G funding round which began in January. The bank said it also raised $250 from other investors.
Founded in 2013, Nubank says it has 40 million customers, making it the largest digital bank in the world in terms of the number of clients. With the new investments, Nubank has become “the most valuable digital bank in the world and one of the largest financial institutions in Latin America,” the announcement details. Reuters noted that the new investments give Nubank a $30 billion valuation, which is only slightly less than Banco Santander Brasil SA, Brazil’s no. 3 bank. The publication previously reported that the bank is planning a U.S. stock market listing as soon as this year.
The pro-bitcoin Nubank has repeatedly said it will be offering bitcoin investment to customers following the acquisition of Easynvest, a brokerage firm that offers a bitcoin exchange-traded fund (ETF). Nubank received authorization from Brazil’s central bank to purchase Easynvest in May. Last week, the bank rebranded Easynvest to Easynvest by Nubank.
The bitcoin ETF offered by Easynvest is QBTC11 by QR Asset Management. It was the first bitcoin ETF approved by the Securities and Exchange Commission of Brazil (CVM). It is listed on the B3 stock exchange, one of the largest stock exchanges in Latin America and the second oldest in Brazil.
Nubank said Tuesday that it plans to use the money raised to fund its international expansion to Mexico and Colombia, launch new products and services, and hire more employees.
According to CNBC, Nubank is a private bank based in Brazil that was founded in 2013, and has roughly 40 million customers. The company’s CEO has revealed an initial public offering is currently being planned, but is a likely possibility in the future.
The $500 million investment is notable, as Buffett is a well-known bitcoin critic, who has in the past called the cryptocurrency a “gambling device” and argued they are worthless because they don’t produce anything. The investor has made a similar case against gold.
The digital bank notably acquired Easynvest, a digital investment platform, late last year. The platform allows anyone to invest without paying commissions, and offers its users access to bitcoin exchange-traded funds and products, including 3iQ’s QBTC bitcoin investment product.
