Warren Buffett’s Berkshire Hathaway Invests $500Mln in Digital Bank Offering Bitcoin ETF Investment
Warren Buffett’s Berkshire Hathaway has made an investment of $500 million in the parent company of Nubank.
Founded in 2013, Nubank is a privately held digital asset bank with roughly 40 million customers. The South American company announced on Tuesday that it had raised funds from Berkshire Hathaway in an extension of the Series G round, carried out in January this year.
“The new round is the result of Nubank's hyper-accelerated and sustainable growth,” noted the bank adding, “The company is the largest digital bank in the world in terms of the number of customers,” which added more than 45,000 new customers per day in the first five months of the year.
With around 50% of the population in Latin America not having a bank account and credit card penetration at 21% on average, this new funding will help them expand their services across the region.
Just this month, Nubank announced the purchase of Easynvest, a digital investment platform in Brazil with over $5 billion in assets under custody and 1.6 million clients.
This investment allows Nubank to offer investment in Bitcoin as QR Bitcoin ETF (QBTC11) is one of Easynvest's products. Nubank also covers Bitcoin, cryptocurrency, and NFTs as part of its Financial Dictionary. At the time the company highlighted,
“Bitcoin is a uniquely digital form of money, being an innovative technology that is in full development. At Easynvest, we have a Bitcoin ETF! It works like a normal ETF, but as an underlying asset of the Bitcoin price. Bitcoin ETF follows the Bitcoin price. It is a simpler and even safer way to invest in cryptocurrency.”
This means, with this latest investment, Buffett, who is a staunch Bitcoin critic, will be involved in the cryptocurrency market, though indirectly.