Known as the “Oracle of Omaha” and by other nicknames, legendary investor Warren Buffett is a man of many names. Buffett also gives out nicknames from time to time, including calling leading cryptocurrency Bitcoin BTC/USD “rat poison squared.”
Here’s how Buffett might be more invested in cryptocurrency than he knows.
Buffett’s Bitcoin Ties: Buffett and Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) invested $500 million in Brazilian digital bank Nubank. The digital bank went public in December 2021 as Nu Holdings NU and Buffett invested additional capital in the company.
Now with an investment of more than $1 billion in Nu Holdings, Buffett could be more exposed to the growth of the cryptocurrency market than he knows or would probably like to be.
Nubank plans to launch its own token called Nucoin in the first half of 2023, which will be delivered free to customers and will be the kick-off of a new “groundbreaking rewards program.”
“We are opening a door to the future. Nucoin is a new way to recognize customer loyalty and foster further engagement with Nubank products,” Nucoin General Manager Fernando Czapski said.
Nubank has over 70 million customers in Brazil and other Latin American countries. The plan is to offer customers discounts and perks available by spending Nucoins.
Benzinga reported in May 2022 that Nu Holdings was launching cryptocurrency trading for Bitcoin and Ethereum ETH/USD and adding Bitcoin to its balance sheet.
Czapski said this another step ahead for the company’s push in blockchain technology and cryptocurrency.
Polygon co-founder Sandeep Nailwal praised the move.
“The fact that one of the largest digital banking institutions in the world is offering its own cryptocurrency is a strong testament to the utility that blockchain and crypto have to offer,” Nailwal said.
Related Link: How To Buy Bitcoin
Why It’s Important For Warren: Buffett has been one of the biggest opponents of Bitcoin and the rise of cryptocurrencies. Buffett was even labeled enemy number one of Bitcoin by Peter Thiel.
Buffett said he wouldn’t buy Bitcoin even if it dropped to $25.
Buffett has been a proponent of investing in value companies and also investing in what you know. Buffett often supports the companies that he invests in, whether its by drinking pop from Coca-Cola KO or switching from a flip phone to an iPhone from Apple Inc AAPL.
The legendary investor invests in companies he believe have a strong feature and have products that consumers want and need.
Buffett could have direct and indirect exposure to Bitcoin and other cryptocurrencies, which means when he is talking negatively about Bitcoin he is speaking against a growth area of at least one of hist investments.
Berkshire Hathaway also owns a stake in Visa Inc V, which gives Buffett partial ownership of a CryptoPunk NFT.
Polygon Studios CEO Ryan Wyatt celebrated the partnership and also mentioned Buffett.
“We are excited for this partnership with Nubank and yet another big company building on Polygon! Also, let’s welcome Warren Buffett to the space,” Wyatt tweeted with a winking emoji.
NU Price Action: Nu shares were up 4% to $4.54 on Friday versus a 52-week range of $3.26 to $12.24.
Illustration via Shutterstock.