Warren Buffett’s Berkshire Hathaway Inc. has invested $500 million in the parent company of Nubank, a Brazil-based digital bank that is friendly to bitcoin, the South American company announced Tuesday. The investment is part of Nubank’s Series G funding round, which began in January. In addition to Berkshire Hathaway’s $500 million, Nubank raised $250 million from other investors.
Nubank: The World’s Largest Digital Bank Embraces Bitcoin
Founded in 2013, Nubank now has 40 million customers, making it the largest digital bank in the world by client count. With the new funding, Nubank has become “the most valuable digital bank in the world and one of the largest financial institutions in Latin America,” the announcement stated. Reuters noted that the investment gives Nubank a $30 billion valuation, only slightly less than Banco Santander Brasil SA, Brazil’s third-largest bank. The bank is reportedly planning a U.S. stock market listing as soon as this year.
Nubank has repeatedly said it will offer bitcoin investment options to customers following its 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.”
Bitcoin ETF: QBTC11 Debuts on B3 Exchange
The bitcoin ETF offered by Easynvest is QBTC11, managed by QR Asset Management. It was the first bitcoin ETF approved by the Securities and Exchange Commission of Brazil (CVM) and is listed on the B3 stock exchange, one of the largest exchanges in Latin America and the second oldest in Brazil. The ETF provides Brazilian investors with a regulated and accessible way to gain exposure to bitcoin.
Nubank said Tuesday it will use the funds to expand internationally into Mexico and Colombia, launch new products and services, and hire more employees. David Velez, Nubank’s founder and CEO, stated: “We are delighted to have Berkshire Hathaway as an investor, which underscores Nubank’s leadership in reshaping financial services in Latin America.”
A Signal of Traditional Capital Embracing Crypto
Notably, Buffett has long been critical of bitcoin, once calling it “rat poison squared.” However, Berkshire Hathaway’s investment in a bank deeply involved in cryptocurrency is seen as a strong signal that traditional capital giants are shifting their stance on digital assets. While the investment does not involve direct purchase of bitcoin, it indirectly exposes Berkshire to the crypto ecosystem through Nubank’s bitcoin-related services.
Industry analysts believe that as more traditional financial institutions and investment giants enter the cryptocurrency space, the legitimacy and mainstream acceptance of digital assets like bitcoin will continue to rise. Nubank’s case demonstrates that even skeptical traditional investors can participate in the growth of the emerging market by investing in infrastructure.