Warren Buffett, through his Berkshire Hathaway, has invested $500 million in Brazilian digital bank Nubank, which is interested in offering Bitcoin ETFs.
Buffett’s investment is reportedly an extension of the fintech’s $400m Series G round announced in January. Meanwhile, Berkshire Hathaway also has a digital payments company, StoneCo, in Brazil.
Nubank appears to have also announced that there will be a second fundraising extension totalling $250m. Behind this investment round, there are famous names such as Sands Capital, Invest, Sunley House Capital, CPP Investments, MSA Capital, Tarsadia Capital and Chinese tech giant Tencent among others.
Not only that, it can be said that with all the fundraising extensions, Nubank has reached $1.15 billion, the largest round ever raised by a tech company in Latin America.
Challenger Bank was founded in 2013 by David Vélez and is based in São Paulo, with its co-founders Cristina Junqueira and Edward Wible.
This funding from Buffett will be used to develop the company’s product portfolio, such as fee-free credit card, credit and investment products through Easynvest, a fintech acquired by Nubank in 2020.
Warren Buffett, Nubank and Bitcoin: what kind of relationship is there?
At the moment, the digital bank chosen by Buffett and others seems to have hinted last month at some sort of interest in the queen of crypto, Bitcoin.
On the official website, there are blog articles in which the bank is set to explain what Bitcoin is and how it works, but above all how much it has revolutionized the FinTech ecosystem in the last decade.
In fact, the current relationship between Nubank and Bitcoin exists through the Brazilian digital investment company, Easynvest. In fact, last September 2020, Nubank acquired Easynvest which as of this May 2021 is offering QR Bitcoin ETF (QBTC11).
In this regard, here is how Easynvest describes Bitcoin:
“Bitcoin is on everyone’s lips. The virtual currency is increasingly the subject of numerous news stories in the press, and a quick search is enough to discover that even billionaires like Elon Musk and Ray Dalio have already taken an interest in this type of asset. But did you know that there are already new ways to invest in cryptocurrencies? We are talking about Bitcoin ETFs and even funds focused on this type of asset”.
Thus, the connection between Nubank and Bitcoin exists, and perhaps also between Warren Buffett and BTC. However, it was recently reported that Buffett was out of the blockchain and bitcoin world.
With this inclusion of Berkshire Hathaway in Nubank and thus Easynvest, Buffett could call himself in a way a “new entrant” in the crypto market!