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 may be more invested in cryptocurrency than he knows.
Buffett’s Bitcoin Band: Buffett and Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) invested $500 million in Brazilian digital bank Nubank. The digital bank was announced in December 2021 as Now Holdings NOW and Buffett invested additional capital in the company.
Now with an investment of more than $1 billion in Nu Holdings, Buffett may be more exposed to the growth of the cryptocurrency market than he knows or probably would like to be.
Nu Holdings unit Nubank is launching its own cryptocurrency through a collaboration with Polygon MATIC/USD to drive their loyalty and rewards for customers.
Nubank plans to launch its own token called Nucoin in the first half of 2023, which will be delivered free of charge to customers and will be the start of a new “groundbreaking rewards program.”
“We are opening a door to the future. Nucoin is a new way to recognize customer loyalty and promote further engagement with Nubank’s 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 benefits available by spending Nucoins.
Benzinga reported in May 2022 that Nu Holdings launched cryptocurrency trading for Bitcoin and Ethereum ETH/USD and adding Bitcoin to its balance sheet.
Czapski called this another step forward for the company’s push into 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 matters to Warren: Buffett has been one of the biggest opponents of Bitcoin and the rise of cryptocurrencies. Buffett was even labeled Bitcoin’s number one enemy Peter Thiel.
Buffett said he would not 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 he invests in, whether it’s by drinking pop from them Coca Cola COW or switch from a flip phone to an iPhone from Apple Inc AAPL.
The legendary investor invests in companies that he believes have a strong character and have products that consumers want and need.
Buffett may have direct and indirect exposure to Bitcoin and other cryptocurrencies, meaning that when he speaks negatively about Bitcoin, he is speaking against a growth area with at least one of his investments.
Berkshire Hathaway also owns a stake in Visa Inc Vgiving Buffett part ownership of one Cryptopunk NFT.
CEO of Polygon Studios Ryan Wyatt celebrated the partnership and also mentioned Buffett.
“We’re excited about this partnership with Nubank and another great company built on Polygon! Let’s also welcome Warren Buffett to the space,” Wyatt tweeted with a winking emoji.
NOW Price Action: Nu shares rose 4% to $4.54 on Friday, compared with a 52-week range of $3.26 to $12.24.
Illustration via Shutterstock.