Warren Buffet, also known as the Oracle of Omaha has his portfolio filled with different companies that tend to have either an indirect or direct connection with Bitcoin as well as other cryptocurrencies.
According to the best news site cryptocurrency, Berkshire Hathaway has dumped a proper portion of the holdings that it had on Mastercard and Visa and increased the exposure that it has with Nubank which is one of the biggest Fintech Banks to exist in Brazil. One interesting thing about the Bank is that it is known to be a very big investor in Bitcoin.
In a security filing that took place on the late 14th of February, the industrial conglomerate made a disclosure that it had managed to purchase about $1 billion worth of Nubank Class A stock in Q4/2021.
On the other hand, it managed to sell about $1.8 billion as well as $1.3 billion worth of Visa and Mastercard stocks, respectively. This has signaled a proper shift away from credit companies so that the conglomerate can gain some exposure with their fintech rivals.
The Connection Between Buffet and Bitcoin
Buffett’s additional investment into Nubank shows his acknowledgment of the fintech sector’s underlying theme the digitization of financial services, as well as his willingness to associate with companies that are involved in the cryptocurrency sector.
In detail, Easynvest, a trading platform that Nubank acquired in September 2020 has been actively offering a Bitcoin exchange-traded fund (ETF) since June 2021. Dubbed QBTC11, the ETF is backed by QR Asset Management and is listed on the B3 stock exchange, the second-oldest bourse in Brazil.
Thus, it appears that Nubank, which remains exposed to the emerging crypto sector via Easynvest, could use the additional revenue opportunities to benefit its top investor, Warren Buffett, despite his views that Bitcoin is a “rat poison squared.”
That is primarily because of the growth of crypto-related investment products in 2021. Notably, their numbers doubled in the year, rising from 35 to 80, as per Bloomberg Intelligence data, while the total valuations of the assets they held reached $63 billion versus $24 billion at the start of 2021.
Leah Wald, chief executive of crypto-asset manager Valkyrie Investments, predicted an increase in the capital flows into crypto-related investment vehicles, saying they have become a “phenomenon that’s starting to take off,” before commenting:
“If you look at inflows from a volume perspective, not only has it been steady even with the price corrections that Bitcoin is notoriously famous for, but you’re seeing a lot of institutions jump in.”
Buffet Has His Portfolio Full With Companies that Love Crypto
While there might not be a direct investment in Bitcoin from Warren Buffet, there are some methods with which he is also gaining some indirect exposure for sure. The companies that are included in the portfolio of the businessman are all foraying into the entire sector of cryptocurrency and that certainly goes to say something.
For example, in October 2021, just a month before Bitcoin reached its all-time high of $69,000, the fifth-largest U.S. bank U.S. Bancorp launched a cryptocurrency custody service for its institutional investment managers, noting that they witnessed an increase in demand from their “fund services clients” over the last few years.
Similarly, in another announcement made in October 2021, Bank of America launched a cryptocurrency research initiative, citing “growing institutional interest.” Months before, BNY Mellon announced that it would hold, transfer and issue Bitcoin and similar cryptocurrencies for its asset-management clients.
“The Nubank investment can be tagged as Buffett’s way of supporting the fintech/crypto world without taking back his criticisms of the past,” said Greg Waisman, who is the co-founder and chief operating officer of crypto wallet service Mercuryo, adding that the Berkshire boss is now backing the “digital currency ecosystem indirectly.” “Even an indirect exposure is bound to increase the positive sentiment that may push more investors into the space.”